Use the following to answer questions: Table: Oil Pumps $$\begin{array} { c c c c }
\hline { \text { Oil Pump One } } && { \text { Oil Pump Two } } \
\begin{array} { c }
\text { Quantity } \
\text { (Barrels of Oil) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Quantity } \
\text { (Barrels of Oil) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Cost }
\end{array} \
\hline 1 & 5 & 1 & 10 \
2 & 10 & 2 & 12 \
3 & 15 & 3 & 14 \
4 & 20 & 4 & 16 \
5 & 25 & 5 & 18 \
6 & 30 & 6 & 20 \
7 & 35 & 7 & 22 \
\hline
\end{array}$$
-(Table: Oil Pumps) Refer to the table. Suppose that this market is producing six barrels of oil from Oil Pump One and two barrels of oil from Oil Pump Two. What happens to the total costs of production if we produce one less barrel of oil from Oil Pump One and one more barrel of oil from Oil Pump Two?
A) The total costs of production fall by $16.00.
B) The total costs of production rise by $7.00.
C) The total costs of production fall by $30.
D) The total costs of production rise by $14.

Question

Use the following to answer questions: Table: Oil Pumps $$\begin{array} { c c c c } 
\hline  { \text { Oil Pump One } } && { \text { Oil Pump Two } } \
\begin{array} { c } 
\text { Quantity } \
\text { (Barrels of Oil) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Quantity } \
\text { (Barrels of Oil) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Cost }
\end{array} \
\hline 1 & 5 & 1 & 10 \
2 & 10 & 2 & 12 \
3 & 15 & 3 & 14 \
4 & 20 & 4 & 16 \
5 & 25 & 5 & 18 \
6 & 30 & 6 & 20 \
7 & 35 & 7 & 22 \
\hline
\end{array}$$
-(Table: Oil Pumps) Refer to the table. Suppose that this market is producing six barrels of oil from Oil Pump One and two barrels of oil from Oil Pump Two. What happens to the total costs of production if we produce one less barrel of oil from Oil Pump One and one more barrel of oil from Oil Pump Two?
A) The total costs of production fall by $16.00.
B) The total costs of production rise by $7.00.
C) The total costs of production fall by $30.
D) The total costs of production rise by $14.

Quizplus · Accepted Answer

The marginal cost of producing one less barrel of oil from Oil Pump One is $30, and the marginal cost of producing one more barrel of oil from Oil Pump Two is $20. So the total costs of production fall by $10.

Use the Following to Answer Questions: Table: Oil Pumps -(Table: Oil Pumps) Refer to the Table