1. The Omnibus Corporation finds that its daily costs are $50 when it produces n
ID: 1234135 • Letter: 1
Question
1. The Omnibus Corporation finds that its daily costs are $50 when it produces no output. Itstotal variable costs (TVC) change with output as shown in the accompanying table. Use this
information to answer the following question(s).
Output TVC
1 $36
2 $57
3 $73
4 $94
5 $120
Refer to the above information. The marginal cost of the fourth unit of output is:
A) $73.
B) $94.
C) $21.
D) $23.50.
Use the following chart to answer question 2
Number of
Workers
Total Product Marginal Product
0 0 --
1 10 10
2 10
3 28
4 34
5 5
6 42
2. Refer to the above data. The marginal product of the third worker:
A) is 6.
B) is 7.
C) is 8.
D) is 9.
Explanation / Answer
answers 1) i)3 $73 ii) A) $73 2)4 34 i)C) is 8.
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