Question

The table shows the production function for snack cakes and labor. Assume fixed costs are $200/day and that one full time worker costs $80/day ($10x8hrs). Given this information, what is the marginal cost of the 50th case? (assume labor is your only variable cost)

# of Workers	Q of Snack Cakes	TVC	TFC	TC	MC
0	0
1	5
1.6	10
2	15
2.35	20
2.75	25
3.22	30
3.75	35
4.35	40
5	45
5.75	50
6.6	55
7.5	60
8.5	65
10	70

Answer 1

Answer: Table showing information as following :

No of workers	Quantity of snacks cake	TVC	TFC	TC= TVC+TFC	MC
0	0	0	$200	$200	-
1	5	$80	$200	$280	$80
1.6	10	$128	$200	$328	$48
2	15	$160	$200	$360	$32
2.35	20	$188	$200	$388	$28
2.75	25	$220	$200	$440	$52
3.22	30	$257.6	$200	$457.6	$17.6
3.75	35	$300	$200	$500	$42.4
4.35	40	$348	$200	$548	$48
5	45	$400	$200	$600	$52
5.75	50	$460	$200	$660	$60
6.6	55	$528	$200	$728	$68
7.5	60	$600	$200	$800	$72
8.5	65	$680	$200	$880	₹80
10	70	$800	$200	$1000	$120

Given information from the table , Marginal cost of 50 th cake is $60.