To find the marginal cost of increasing production from 3,000 to 5,000 units, we need to calculate the total cost of producing 5,000 units and subtract the total cost of producing 3,000 units.
Total cost of producing 5,000 units:
Fixed Cost + (Variable Cost * Number of Workers)
= $2000 + (300 * 5)
= $3500
Total cost of producing 3,000 units:
Fixed Cost + (Variable Cost * Number of Workers)
= $2000 + (100 * 3)
= $2300
Marginal cost = Total cost of producing 5,000 units - Total cost of producing 3,000 units
= $3500 - $2300
= $1200
Therefore, the marginal cost of increasing production from 3,000 to 5,000 units is $1200.
Number of workers: 10, 20, 30
Output(thousands): 3, 5, 6
Fixed Cost ($): 2000, 2000, 2000
Variable Cost ($): 100, 200, 300
In the table above, what is the marginal cost of increasing production from 3,000 to 5,000 units?
-$0.10
-$0.05
-$100
-$2100
1 answer
1 answer