|
19. The marginal cost of the 52nd unit of output is simply the additional cost the firm must pay in order to obtain the extra output. Thus, fixed costs have no bearing on marginal costs so that information can be ignored.
From the table we can see that the firm must hire a 6th worker to obtain the 52nd unit of output. Since it must pay these workers $20 per hour and since the 6th worker adds 5 units of output (the MP column) the approximate marginal cost of the units added to production by that worker, including the 52nd unit is $20/5 = $4.
|
| Workers | Output |
MP |
| 1 | 10 |
10 |
| 2 | 22 |
12 |
| 3 | 31 |
9 |
| 4 | 40 |
9 |
| 5 | 47 |
7 |
| 6 | 52 |
5 |
| 7 | 56 |
4 |
| 8 | 59 |
3 |
| 9 | 61 |
2 |
| 10 | 62 |
1 |
|
