When a cherry orchard in Oregon adds a worker,the total cost of production increases by $24,000.Adding the worker increases total cherry output by 600 pounds.Therefore,the marginal cost of the last pound of cherries produced is:
A)$40.
B)$19.
C)$4,000.
D)$24,000.

Question

Quizplus · Accepted Answer

The marginal cost is calculated by dividing the change in total cost by the change in quantity produced. Here, the increase in cost is $24,000 and the increase in output is 600 pounds, so the marginal cost per pound is $24,000 / 600 = $40.

When a Cherry Orchard in Oregon Adds a Worker,the Total