Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s).
-Based on the Application,the marginal cost of sailing a ship faster is
A) more cargo delivered per year.
B) more fuel cost incurred.
C) less fuel costs incurred.
D) less cargo delivered per year.

Question

Quizplus · Accepted Answer

The application states that as the speed of the ship increases, the fuel cost incurred also increases. Therefore, the marginal cost of sailing a ship faster is more fuel cost incurred. The best choice is to sail at the speed that minimizes the total cost of shipping, which in this case means balancing the benefits of delivering more cargo with the costs of burning more fuel.

Recall the Application About the Best Speed at Which to Sail