Joey's Lawncutting Service rents office space from Joey's dad for $300 per month.Joey's dad is thinking of increasing the rent to $400 per month.As a result Joey's marginal cost of cutting grass will
A) increase by $100 divided by the amount of grass cut.
B) increase by $100.
C) decrease by $100.
D) not change.

Question

Quizplus · Accepted Answer

The marginal cost of cutting grass is the additional cost of cutting one more lawn. The increase in rent does not directly affect the cost of cutting each lawn or the amount of grass that Joey cuts. Therefore, there will be no change in Joey's marginal cost of cutting grass, and the answer is D, not change.

Joey's Lawncutting Service Rents Office Space from Joey's Dad for $300