Reference: Ref 12-1 (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

Reference: Ref 12-1 (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 Answer of   Reference: Ref 12-1 (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.

Reference: Ref 12-1 (Table: Oil Pumps) Refer to the Table