If the cost of labor is the only variable cost that the firm faces, what is the cost incurred by the business for each additional unit of labor?
(1 point)
Responses
$50
50 dollars
$10
10 dollars
$16
16 dollars
$80
The answer is $10. For each additional unit of labor, the firm incurs a cost of $10.
Number of Workers Output Total Cost Fixed Cost Variable Cost
1 20 $300 $250 $50
2 35 $352
$250 $102
3 45 $406 $250 $156
4 50 $462 $250 $212
What is the marginal cost of producing the 45th unit of output?
(1 point)
Responses
$154
154 dollars
$52
52 dollars
$156
156 dollars
$5.40
To calculate the marginal cost of producing the 45th unit of output, we need to find the change in total cost when producing the 45th unit compared to the previous output.
Given that the total cost for producing 45 units is $406 and the total cost for producing 35 units is $352, the change in total cost is $406 - $352 = $54.
Hence, the marginal cost of producing the 45th unit of output is $54.