(Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, the marginal cost when increasing production from 51 to 64 bushels of wheat is:
A)$16.
B)$15.38.
C)$12.50.
D)$18.75.

Question

Quizplus · Accepted Answer

From the table, we can see that when production is 51 bushels of wheat, the total cost is $1,140 and when production is 64 bushels, the total cost is $1,350. The difference in total cost is $210.

From the figure, we can see that the slope of the line between 51 and 64 bushels of wheat is approximately $15.38. This means that the marginal cost of producing an additional bushel of wheat when production is increased from 51 to 64 bushels is $15.38.

Therefore, the best choice is B, $15.38.

(Figure and Table: Variable, Fixed, and Total Costs) Look at the Figure