Reference: Ref 11-4 (Figure: Costs of Oil Production) Refer to the figure. Assuming that price equals marginal cost, the total cost of producing eight barrels of oil is:

Question

Quizplus · Accepted Answer

The marginal cost of the eighth barrel of oil is $30, which means that the total cost of producing eight barrels would be the sum of the marginal costs up to the eighth barrel, which is:

$10 + $20 + $30 + $40 + $50 + $60 + $70 + $80 = $360

Therefore, the total cost of producing eight barrels of oil is $240, which is the closest answer choice.

Reference: Ref 11-4 (Figure: Costs of Oil Production) Refer to the Figure