Scott owns a law-enforcement training operation in Boise,Idaho.He employs three trainers.The last trainer Scott hired increased Scott's total cost by $466 per week even though the trainer brought in only one new client.Hence Scott's
A) total variable cost equals $466.
B) marginal cost of the last client equals $466.
C) marginal cost of the last worker equals $233.
D) total variable cost equals $233.
E) total fixed cost of the last client equals $466.

Question

Quizplus · Accepted Answer

The marginal cost is the increase in total cost due to the addition of one unit (in this case, one client). The last trainer hired increased the total cost by $466, so the marginal cost of the last client is also $466. Choices A, C, D, and E are incorrect because they do not accurately reflect the relationship between the new trainer and the marginal cost of the last client.

Scott Owns a Law-Enforcement Training Operation in Boise,Idaho