Table 14-1
This table shows the revenue and costs of a parrot farmer.

-Refer to Table 14-1. If the farmer harvested three parrots then:

Question

Table 14-1
This table shows the revenue and costs of a parrot farmer.
 
-Refer to Table 14-1. If the farmer harvested three parrots then:

Quizplus · Accepted Answer

According to the table, when the farmer harvests three parrots, the total variable cost is $24, which gives a marginal cost of $14 (the difference between the total variable cost of harvesting three and two parrots). The fixed cost is not specified in the table. The total revenue for harvesting three parrots is $48, which is greater than the total variable cost, so C is false. Marginal revenue for harvesting the third parrot is $18, which is greater than marginal cost, so D is false. Therefore, the correct answer is B, marginal cost is $14.

Table 14-1 This Table Shows the Revenue and Costs of a Parrot