A firm producing cans buys three tons of aluminum per day at $200 per ton. If it buys four tons per day, it receives a quantity discount on all units and pays only $175 per ton. The marginal cost of the fourth ton per day is

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The marginal cost of the fourth ton is the additional cost incurred by purchasing the fourth ton. Initially, the firm pays $200 per ton for three tons, totaling $600. With the discount, the firm pays $175 per ton for four tons, totaling $700. The additional cost for the fourth ton is $700 - $600 = $100.

A Firm Producing Cans Buys Three Tons of Aluminum Per