The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets.
TABLE 13-4
-Refer to Table 13-4.What is the marginal cost of the variable factor employed by this firm?
A)$0
B)$5
C)$10
D)$20
E)$30

Question

The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets.
  TABLE 13-4
-Refer to Table 13-4.What is the marginal cost of the variable factor employed by this firm?
A)$0 
B)$5 
C)$10 
D)$20 
E)$30

Quizplus · Accepted Answer

The marginal cost of the variable factor is calculated by dividing the change in total cost by the change in the amount of output. From the table, we can see that the change in total cost from producing 1 to 2 yo-yos is $10 ($20 - $10), and the change in output is 1. Therefore, the marginal cost of the variable factor is $10.

The Table Below Shows the Total Production for Varying Numbers