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    Hi,

    I have an economics question relating to marginal cost. Here is the provided info: In one month, Jason can produce either 300 kilogram of foods or 150 litres of liquor.

    And the problematic question which I'm having trouble grasping: What is the marginal cost of a litre of liquor when the quantity produced is 75 litres a month? What is special about Jason’s marginal cost of liquor?

    Just not getting this one. Any help to understand this would be greatly appreciated. Thanks in advance!
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    Well my best idea would be that the Marginal cost of producing liquor must not increase at higher output quantities as food?
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    Thanks for your input. That makes sense. And on what's special about the marginal cost I figure it's that the marginal cost remains constant. I plan on writing that in unless suggested otherwise. Thanks!
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    I would say 2 kg of food and also MC stays constant. He can produce 150 litres in the whole month, so in 1/150 th of the month he can produce 1 litre. But in that time he can produce 1/150 * 300 kg of food = 2kg of food.
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    I appreciate the help. Great forum!
 
 
 
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