Question

A farmer has developed a new type of fertilizer. This new fertilizer costs 20

Answer 1

Answer:

A

Step-by-step explanation:

Marginal cost is the change in total cost as a result of increasing output by one unit

Marginal cost  = Δcost / Δquantity

0.2 / 0.25 = 0.8

The marginal cost would decrease because the change in output is higher than the change in total cost

Marginal benefit would increase

Opportunity cost is the cost of the opportunity forgone when one alternative is chosen over other alternatives. There is no enough information given to determine the impact on opportunity cost