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:

$50

Explanation:

Marginal costs refer to the additional expense incurred in the manufacturing of one more unit of a product. It is the incremental cost associated with producing an extra unit of a good.

The formula for calculating  marginal cost is,

MC = change in cost/ Change in quantity

in this case:

MC = $1550 - $ 1500

 26-25

MC = $50/1

Marginal costs= $50