Austin's total fixed cost at the bakery is $3,600 a month. Austin employs 20 workers and payseachworker $8 an hour. The marginal product of the twentieth worker is 12 iced cupcakes an hour.What isthe marginal cost of the last cupcake produced by the last worker Austin hired

Total workers employed in Austin: 20.The marginal product of 20th worker = 12 iced cupcakes per…

Answered: Austin's total fixed cost at the bakery…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Austin's total fixed cost at the bakery is $3,600 a month. Austin employs 20 workers and pays each worker $8 an hour. The marginal product of the twentieth worker is 12 iced cupcakes an hour. What is the marginal cost of the last cupcake produced by the last worker Austin hired