When a cherry orchard in Oregon adds a worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced is:

A. $19.

B. $4,000.

C. $24,000.

D. $40

Question

Business

Maia Forbes

11 August, 13:33

When a cherry orchard in Oregon adds a worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced is:

A. $19.

B. $4,000.

C. $24,000.

D. $40

+5

Answers (1)

Know the Answer?

Chandler Chung · Answer 1

D. $40

Explanation:

Given that

Total cost increased by $24000

Output increased by 600pounds

Recall that

Marginal cost = Change in total cost/change in total output

Thus

Marginal cost = 24000/600

Marginal cost = $40.

Therefore, marginal cost on the last pound of cherry produced is equal to $40

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

When a cherry orchard in Oregon adds a worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced is:

A. $19.

B. $4,000.

C. $24,000.

D. $40