When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is:

A) $40.
B) $19.
C) $4,000.
D) $24,000.

Question

Pham Hong Son (K13_HN) · Accepted Answer

Final Answer : A, Explanation :  The marginal cost is calculated by dividing the change in total cost by the change in quantity produced. Here, the increase in cost is $24,000 and the increase in output is 600 pounds, so the marginal cost per pound is $24,000 / 600 = $40.

When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is:

A) $40.
B) $19.
C) $4,000.
D) $24,000.

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Learning Objectives

Related questions

When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is:A) $40.B) $19.C) $4,000.D) $24,000.

Definitions

Learning Objectives

Learning Objectives

Related questions

When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is:

A) $40.
B) $19.
C) $4,000.
D) $24,000.