Question: A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours a day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. What is the marginal cost of producing the computers that Pam can assemble during her 2nd hour of work?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question:
A firm pays Pam $40 per hour to assemble
personal computers.
Each day, Pam can assemble 4 computers if
she works 1 hour, 7 computers if she works 2
hours, 9 computers if she works 3 hours, and
10 computers if she works 4 hours. Pam
cannot work more than 4 hours a day.
Each computer consists of a motherboard, a
hard drive, a case, a monitor, a keyboard, and
a mouse. The total cost of these parts is $600
per computer.
What is the marginal cost of producing the
computers that Pam can assemble during her
2nd hour of work?
Transcribed Image Text:Question: A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours a day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. What is the marginal cost of producing the computers that Pam can assemble during her 2nd hour of work?
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