To calculate the marginal cost of producing more items, divide the change in the total cost by the change in the quantity. Using the baker’s example, let’s assume that you currently produce 100 loaves every day at a unit cost of a 30-cents per loaf. To increase production by another 50 loaves, all costs remain the same per loaf, except labor, because you have to hire an additional person to work two hours at a cost of $10 per hour. Therefore, the marginal cost of producing an extra 50 loaves would be the increased cost ($20) divided by the number of additional loaves (50), which works out to be 40-cents per loaf.
Answers & Comments
Answer:
To calculate the marginal cost of producing more items, divide the change in the total cost by the change in the quantity. Using the baker’s example, let’s assume that you currently produce 100 loaves every day at a unit cost of a 30-cents per loaf. To increase production by another 50 loaves, all costs remain the same per loaf, except labor, because you have to hire an additional person to work two hours at a cost of $10 per hour. Therefore, the marginal cost of producing an extra 50 loaves would be the increased cost ($20) divided by the number of additional loaves (50), which works out to be 40-cents per loaf.
mark me brainliest
Verified answer
Answer:
To calculate the marginal cost of producing more items, divide the change in the total cost by the change in the quantity.
Explanation:
hope it may helpful for you
mark me as brainlist plzzzz