The cost of manufacturing a molded part is related to the quantity produced during a production run. When 100 parts are produced, the cost is $300. When 400 parts are produced, the cost is $2700. What is the marginal cost of
The function?
A) $8.00 per part
B) $9.00 per part
C) $6.00 per part
D) $0.13 per part

Question

Quizplus · Accepted Answer

The marginal cost is calculated by the change in cost divided by the change in quantity. From 100 to 400 parts, the cost increases from $300 to $2700, a change of $2400. The change in quantity is 300 parts (400-100). Thus, the marginal cost is $2400 / 300 = $8.00 per part.

The Cost of Manufacturing a Molded Part Is Related to the Quantity