refer to the following:
The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit.

-How much does the 50th unit of output add to the firm's total cost?
A) $6.67
B) $10
C) $400
D) $600
E) none of the above

Question

refer to the following:
The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit.
 
-How much does the 50th unit of output add to the firm's total cost?
A) $6.67 
B) $10 
C) $400 
D) $600 
E) none of the above

Quizplus · Accepted Answer

The 50th unit of output adds $6.67 to the firm's total cost because the marginal cost of production is $6.67.

Refer to the Following