Question

If the production of 25 sets of binoculars per day costs a firm​ $1,500.00 and the production of 26 sets of binoculars per day costs a firm​ $1,550.00, the marginal cost of producing 26 rather than 25 sets of binoculars per day is:______.

A) $50.00.
B) $60.00.
C) $55.00.
D) $59.62.

Answer 1

Answer: A

Explanation: marginal cost = change in cost (dc)÷ change in quantity (dq)

dc = 1550 - 1500 = 50 dollars

dq = 26 - 25 = 1

Marginal cost = 50/1 = 50 dollars

The best answer is A