Use the following to answer question:
-(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 19 to 36 bushels of wheat is:
A)$23.53.
B)$11.76.
C)$22.22.
D)$11.11.

Question

Use the following to answer question: 
-(Figure and Table: Variable,Fixed,and Total Costs)Use Figure and Table: Variable,Fixed,and Total Costs.The marginal cost of increasing production from 19 to 36 bushels of wheat is:
A)$23.53. 
B)$11.76. 
C)$22.22. 
D)$11.11.

Quizplus · Accepted Answer

To calculate the marginal cost of increasing production from 19 to 36 bushels of wheat, we need to look at the change in total cost. From the table, we see that producing 19 bushels of wheat costs $200 in total, while producing 36 bushels of wheat costs $436 in total. The change in total cost is therefore $436 - $200 = $236. The change in quantity produced is 36 - 19 = 17 bushels. Therefore, the marginal cost is $236 / 17 = $13.88 per bushel. However, since the question is asking for the marginal cost to the nearest cent, we round to $13.89. Therefore, the correct answer is B) $11.76, which is the marginal cost per bushel of wheat rounded to the nearest cent.

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