Tom's Landscaping Service has only one variable input,which is labor.Tom's Landscaping Service's labor costs are $300 a day and Tom's Landscaping Service works on 9 yards per day.To work on 10 yards per day,Tom's Landscaping Service's labor costs increase to $325 a day.The marginal cost of working on the 10th yard is

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Quizplus · Accepted Answer

The marginal cost is calculated by the change in total cost divided by the change in quantity. Here, the cost increases from $300 to $325 to work on an additional yard, so the marginal cost is $325 - $300 = $25.

Tom's Landscaping Service Has Only One Variable Input,which Is Labor