When a cherry orchard in British Colombia adds a worker,the total cost of production increases by $24 000.Adding the worker increases the total cherry output by 600 kilograms.Therefore,the marginal cost of the last kilogram of cherries produced is:
A) $40.
B) $19.
C) $4 000.
D) $24 000.

Question

Quizplus · Accepted Answer

The marginal cost is calculated by dividing the change in total cost by the change in quantity produced. Here, the total cost increases by $24,000 and the output increases by 600 kilograms, so the marginal cost per kilogram is $24,000 / 600 = $40.

When a Cherry Orchard in British Colombia Adds a Worker,the