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You have a side business where you knit scarves. A scarf requires labor and wool. Each scarf uses $2 in wool, and each hour you
You have a side business where you knit scarves. A scarf requires labor and wool. Each scarf uses $2 in wool, and each hour you knit, you are sacrificing $20 per hour that you could have earned at your main job. a. If you can knit 4 scarves in an hour, what is the marginal cost of producing a scarf? (5 points) b. What if you can knit 5 scarves in an hour? (5 points) c. Using this scenario, explain the relationship between marginal product of input and marginal cost of output. (5 points)
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