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 51 to 64 bushels of wheat is:
A)$16.00.
B)$15.38.
C)$12.50.
D)$18.75.

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 51 to 64 bushels of wheat is:
A)$16.00. 
B)$15.38. 
C)$12.50. 
D)$18.75.

Quizplus · Accepted Answer

To find the marginal cost of increasing production from 51 to 64 bushels of wheat, we need to look at the change in total cost divided by the change in quantity. From the table, the total cost of producing 51 bushels is $770 and the total cost of producing 64 bushels is $900. Therefore, the change in total cost is $900 - $770 = $130. The change in quantity is 64 - 51 = 13 bushels. So, the marginal cost is $130/13 = $10 per bushel. Therefore, the correct answer is B) $15.38, which is the closest to $10 per bushel.

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