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Vincent Pearson Makes Dining Tables, and He Is Trying to Decide

Question 95

Multiple Choice

Vincent Pearson makes dining tables, and he is trying to decide how many tables to produce. He can sell each dining table for $1,000. The cost of the first table is $900, for the second it's $1,100. For each additional table he produces, the marginal cost of each table increases by $200. How many dining tables should Vincent produce, and what is the total cost of his production?


A) Vincent will not make any tables.
B) He will produce one table at a cost of $900.
C) He will produce two tables at a cost of $2,000.
D) He will produce three tables at a cost of $3,300.

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