$$\begin{array}{l}
\begin{array} { c | c }
\begin{array} { c }
\text { Output } \
\text { (Bushels of } \
\text { Barley) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Cost } \
\text { (Dollars) }
\end{array} \
\hline 10 \text { bushels } & \$ 0.30 \
20 \text { bushels } & \$ 0.60 \
30 \text { bushels } & \$ 0.90 \
40 \text { bushels } & \$ 1.20
\end{array}\
\text { Table } 5.1
\end{array}$$ Refer to Table 5.1,which gives Farmer McColl's marginal cost function for barley.If Farmer McColl is currently producing 20 bushels of barley,which of the following is the market price for a bushel of barley?

Question

$$\begin{array}{l}
\begin{array} { c | c } 
\begin{array} { c } 
\text { Output } \
\text { (Bushels of } \
\text { Barley) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Cost } \
\text { (Dollars) }
\end{array} \
\hline 10 \text { bushels } & \$ 0.30 \
20 \text { bushels } & \$ 0.60 \
30 \text { bushels } & \$ 0.90 \
40 \text { bushels } & \$ 1.20
\end{array}\
\text { Table } 5.1
\end{array}$$ Refer to Table 5.1,which gives Farmer McColl's marginal cost function for barley.If Farmer McColl is currently producing 20 bushels of barley,which of the following is the market price for a bushel of barley?

Quizplus · Accepted Answer

The market price for a bushel of barley, when Farmer McColl is producing 20 bushels, is equal to the marginal cost at that production level, which is $0.60 according to the table.