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20 February, 03:14

When a cherry orchard in Oregon adds a worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal cost of the last pound of cherries produced is:

A. $19.

B. $4,000.

C. $24,000.

D. $40

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  1. 20 February, 03:33
    0
    D. $40

    Explanation:

    Given that

    Total cost increased by $24000

    Output increased by 600pounds

    Recall that

    Marginal cost = Change in total cost/change in total output

    Thus

    Marginal cost = 24000/600

    Marginal cost = $40.

    Therefore, marginal cost on the last pound of cherry produced is equal to $40
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