-The above table shows the total product schedule for the campus book store. If employees are paid $12 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?
A) $12.00
B) $8.00
C) $4.14
D) $3.00

Question

-The above table shows the total product schedule for the campus book store. If employees are paid $12 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?
A) $12.00 
B) $8.00 
C) $4.14 
D) $3.00

Quizplus · Accepted Answer

The marginal cost is calculated by dividing the change in total cost by the change in quantity. If the total product increases from 83 to 87 books, the change in quantity is 4 books. Assuming the number of hours worked increases by 1 hour, the additional cost is $12. Therefore, MC = $12 / 4 = $3.00 per book.

-The Above Table Shows the Total Product Schedule for the Campus