\begin{tabular}{l} 8) Alicia is currently spending $$ \$ 6,000 $$ per week on total variable costs \ to produce 500 hats. To produce 505 hats per week she would have to \ spend $$ \$ 6,100 $$ per week. The marginal cost per hat is _- \ \hline OA) $$ \$ 6,100 $$ \ OB) $$ \$ 100 $$ \ OC) $$ \$ 20 $$ \ OD) $$ \$ 5 $$\end{tabular}

Question

UpStudy AI · Accepted Answer

To find the marginal cost per hat, we can use the following formula:

$$
\text{Marginal Cost} = \frac{\text{Change in Total Cost}}{\text{Change in Quantity}}
$$

### Step 1: Identify the known values
- Current total variable cost for 500 hats: $$ \$6,000 $$
- Total variable cost for 505 hats: $$ \$6,100 $$
- Change in total cost: $$ 6,100 - 6,000 = 100 $$
- Change in quantity: $$ 505 - 500 = 5 $$

### Step 2: Calculate the marginal cost
Now we can substitute the values into the formula:

$$
\text{Marginal Cost} = \frac{100}{5}
$$

### Step 3: Perform the calculation
Calculating the above expression gives:

$$
\text{Marginal Cost} = 20
$$

### Conclusion
The marginal cost per hat is $$ \$20 $$.

Thus, the correct answer is **OC) $$ \$20 $$**.
The marginal cost per hat is \$20.

Upstudy AI Solution

Answer

Solution

The Deep Dive

Related Questions

Latest Economics Questions