Question

6. Suppose Billy Bud's Bucking Broncos employs 20 workers at a daily wage rate of $60 each. The average product of labor is 30 bucking broncos per day; the marginal product of the last worker is 12 bucking broncos per day; and total fixed cost is $3,600 for equipment. What is the marginal cost of the last bucking bronco produced

Answer 1

5

Step-by-step explanation:

Calculation for What is the marginal cost of the last bucking bronco produced

using this formula

Marginal cost of the last bucking bronco produced=Daily wage rate/Marginal product

Let plug in the formula

Marginal cost of the last bucking bronco produced=$60 each/12 bucking broncos per day

Marginal cost of the last bucking bronco produced=5

Therefore the Marginal cost of the last bucking bronco produced will be 5