A farmer discovers that the total cost of growing 50 acres of eggplant is $50,000 and that the total cost of growing 51 acres of eggplant is $52,000. The marginal cost of the 51st acre of eggplant is
A) $52,000.
B) $50,000.
C) $2,000.
D) $1,000.

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred by producing one more unit. Here, the cost of growing 51 acres is $52,000, and the cost of 50 acres is $50,000. Therefore, the marginal cost of the 51st acre is $52,000 - $50,000 = $2,000.

A Farmer Discovers That the Total Cost of Growing 50