Asked by
Colin Phillips
on Nov 04, 2024
Verified
For Elliot's dog-walking service, the only variable input is labor. Elliot's labor costs are $300 a day and his service walks 30 dogs per day. To walk 31 dogs per day, his labor costs increase to $305 a day. The marginal cost of walking that 31st dog is
A) $5.
B) $9.83.
C) $19.52.
D) indeterminate from the information given.
Variable Input
An input whose quantity varies with production levels, affecting cost and output.
Marginal Cost
The added cost of producing one additional unit of a product or service.
Labor Costs
The total amount of money businesses have to pay to their employees for work done, including wages, salaries, and benefits.
- Determine marginal cost and analyze its association with average variable cost and average total cost.
Verified Answer
JS
Learning Objectives
- Determine marginal cost and analyze its association with average variable cost and average total cost.