Which of the following situations illustrates the concept of marginal resource cost?

Burger Barns receives an extra $1.59 by selling another hamburger.
Costs at Daryl's Dairy rise by $.87 when it produces another gallon of milk.
Fred's Farms pays $.90 for each gallon of fuel it needs to run equipment.
When the post office hires another letter sorter, it can sort an extra 3000 letters per hour.
None of the above.


Answer the next question using this table:

Labor
Output
Total Cost
0
0
$15.00
1
10
25.00
2
20
35.00
3
28
45.00
4
34
55.00
5
38
65.00
The firm can sell as much as it wants at a price of $2.00.

If the firm maximizes profit, how much labor will it hire?


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