Table 13-7
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

-Refer to Table 13-7.What is the marginal cost of creating the tenth instructional module in a given month?

Question

Table 13-7
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
 
-Refer to Table 13-7.What is the marginal cost of creating the tenth instructional module in a given month?

Quizplus · Accepted Answer

From the given table, we can see that the total cost of producing 9 instructional modules is $9,060 and the total cost of producing 10 instructional modules is $11,560. Therefore, the marginal cost of creating the tenth instructional module is $11,560 - $9,060 = $2,500.

The best choice would be to create the tenth instructional module as the marginal cost of producing it is less than the price of $3,000 received for each module. This would result in a profit for the company.

Table 13-7 Teacher's Helper Is a Small Company That Has a Subcontract