Tony is the owner of tony’s taqueria. tony is a profit-maximizing owner whose firm operates in a competitive market. an additional worker costs tony $200 and has a marginal productivity of 40 tacos. assuming no other variable costs, what is the marginal cost of a taco? a. $200 b. $8 c. $5 d. there is insufficient information available to answer this question.

(c) $5

Explanation:

Remember, To calculate marginal cost, we divide the change in production costs by the change in quantity.

In this example, the change in production cost is $200 (for hiring an additional worker) while the change in quantity of taco is 40 (increase in marginal productivity).

The marginal cost= $200/40

we get $5 as the marginal cost.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

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