Scenario 12-15
Farmer Jack is a watermelon farmer.If Jack plants no seeds on his farm,he gets no harvest.If he plants 1 bag of seeds,he gets 30 watermelons.If he plants 2 bags of seeds,he gets 50 watermelons.If he plants 3 bags of seeds he gets 60 watermelons.A bag of seeds costs $100,and the costs of seeds are his only costs.
-Refer to Scenario 12-15.What is the shape of Farmer Jack's marginal cost curve?

Question

Quizplus · Accepted Answer

The marginal cost curve is upward sloping as the cost of each additional bag of seeds increases while the additional watermelons produced decrease.
Best Choice:
Answer: Plant 2 bags of seeds
 Planting 2 bags of seeds provides the highest marginal benefit as Farmer Jack gets 50 watermelons and incurs a cost of $200. Planting 3 bags of seeds only provides an additional 10 watermelons for an additional cost of $100, resulting in a lower marginal benefit.

Scenario 12-15 Farmer Jack Is a Watermelon Farmer.If Jack Plants No Seeds