Below is a chart of costs for Starbucks Coffee Roasters, in Seattle Washington. Starbucks purchases coffee beans (crates) and roasts them to produce Y = roasted coffee (kg).
$\mathrm{TFC}=\$ 200$ $ \quad $$ \quad $ $P_{X}=\$ 500 / \text { CRATE }$

$\begin{array}{ccc}
\underline{\mathrm{Y}} &\underline{\mathrm{TVC}} &\underline{\mathrm{TC}} &\underline{\mathrm{ATC}}& \underline{\mathrm{AVC}}& \underline{\mathrm{MC}}\
0 & 0 & -- \
1 & 200 & -- \
2 & 300 & -- \
3 & 340 & -- \
4 & -- & 600 \
5 & 500 & -- \
6 & 1000 & --
\end{array}$
-What is the MC of producing 5 kg of coffee?

Question

Below is a chart of costs for Starbucks Coffee Roasters, in Seattle Washington. Starbucks purchases coffee beans (crates) and roasts them to produce Y = roasted coffee (kg).
 $\mathrm{TFC}=\$ 200$ $ \quad $$ \quad $ $P_{X}=\$ 500 / \text { CRATE }$

$\begin{array}{ccc}
\underline{\mathrm{Y}} &\underline{\mathrm{TVC}} &\underline{\mathrm{TC}} &\underline{\mathrm{ATC}}& \underline{\mathrm{AVC}}& \underline{\mathrm{MC}}\
0 & 0 & -- \
1 & 200 & -- \
2 & 300 & -- \
3 & 340 & -- \
4 & -- & 600 \
5 & 500 & -- \
6 & 1000 & --
\end{array}$
-What is the MC of producing 5 kg of coffee?

Quizplus · Accepted Answer

MC is the change in TC divided by the change in output. From the table, we can see that when output increases from 4 to 5 kg, TC increases from 600 to 700. Therefore, MC = (700 - 600) / (5 - 4) = 100.

Below Is a Chart of Costs for Starbucks Coffee Roasters TFC=$200\mathrm{TFC}=\$ 200TFC=$200

Below Is a Chart of Costs for Starbucks Coffee Roasters $\mathrm{TFC}=\$ 200$