For this question,assume that the aggregate production function is represented by Y = A.Which of the following represents the marginal cost of producing an additional unit of output?
A)W
B)W / A
C)A / W
D) (1+A)W
E)1 / W

Question

Quizplus · Accepted Answer

The marginal cost of production is the additional cost incurred when producing one more unit of output. In this case, since the production function is given as Y = A, we can assume that the cost of producing one unit of output is W/A (since Y/A = W/A). Therefore, the marginal cost of producing an additional unit of output would be W/A, which is the same as choice B.

For This Question,assume That the Aggregate Production Function Is Represented