Crunchy Fruits makes dried fruit snacks. Crunchy Fruits has a multi- plant firm with two production facilities. The table abo summarizes the marginal cost of production at the individual plants and the corresponding quantity produced at the individual plants.
-Refer to the table above. What is Crunchy Fruits total marginal cost to produce 10,500 units?

Question

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity. In this case, the change in quantity is 500 units (from 10,000 to 10,500 units), and the change in total cost is $1.75 (from $17.50 to $19.25). Therefore, the marginal cost is $1.75 / 500 units = $0.0035 per unit.

Crunchy Fruits Makes Dried Fruit Snacks