Use the table to answer the question.
Number of Workers Output (thousands) Fixed Cost ($) Variable Cost ($)
10 3 2000 100
20 5 2000 200
30 6 2000 300
What is the marginal cost of increasing production from 5,000 units to 6,000 units?
(1 point)
Responses
$300
300 dollars
$0.10
0.10 dollars
$0.43
0.43 dollars
$100
100 dollars
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To calculate the marginal cost of increasing production from 5,000 units to 6,000 units, we need to find the difference in total costs for these two levels of production.
For 5,000 units:
Fixed Cost = $2,000
Variable Cost = $100 x 5 = $500
Total Cost = $2,000 + $500 = $2,500
For 6,000 units:
Fixed Cost = $2,000
Variable Cost = $100 x 6 = $600
Total Cost = $2,000 + $600 = $2,600
The marginal cost of increasing production from 5,000 units to 6,000 units is:
$2,600 - $2,500 = $100
Therefore, the correct answer is:
$100