Ty leases a farmer\'s field for $60 a day and grows cabbages. He pays students $

Question

Ty leases a farmer's field for $60 a day and grows cabbages. He pays students $90 a day to pick cabbages and he Total product (cabbages per day) Total cost (dollars per day) 140 leases capital at $80 a day. The table gives the daily output and total cost. What is the marginal cost of picking a cabbage when the quantity increases from 80 to 180 cabbages a day? The marginal cost of picking a cabbage when the quantity increases from 80 to 180 cabbages a day is s >>Answer to 2 decimal places Labor (students) 180 410

Explanation / Answer

Marginal cost is the additional cost which arises due to employing one more unit of input.

Hence the marginal cost of picking a cabbage, when quantity increases from 80 to 180 units of cabbage a day is

= 320 -230

=$90

Hence MC is $90 per day.

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