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  16. Remember that Jamie has to pay her workers $20 per hour. Suppose Jamie decides to purchase fire insurance which costs $87,600 for a year. (As it happens, this works out to be $10 per hour). The approximate marginal cost of the 52nd unit of output now is:
  1. $0.25
  2. $1.25
  3. $2.50
  4. $4.00
  5. $5.00
Number of Workers Total Output
1 10
2 22
3 31
4 40
5 47
6 52
7 56
8 58
9 60
10 61


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