Scenario 12-14
If Farmer Brown plants no seeds on his farm,he gets no harvest.If he plants 1 bag of seeds,he gets 5 bushels of wheat.If he plants 2 bags,he gets 9 bushels.If he plants 3 bags,he gets 12 bushels.A bag of seeds costs $120,and seeds are his only cost.
-Refer to Scenario 12-14.Farmer Brown's marginal-cost curve is

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost divided by the change in quantity. In this case, the marginal cost is the change in total cost (the cost of seeds) divided by the change in quantity (the number of bags of seeds). As the number of bags of seeds increases, the marginal cost decreases. This is because the cost of seeds is spread over a larger number of bushels of wheat.

Scenario 12-14 If Farmer Brown Plants No Seeds on His Farm,he Gets