If Gorgeous Sands Resort has a constant marginal cost of $15,000 for each resort unit and a constant marginal cost of $750 for operating each resort unit, what is Gorgeous Sands Resort's long- run marginal cost per resort unit?
A)$15,000
B)$750
C)$15,750
D)$14,250

Question

Quizplus · Accepted Answer

The long-run marginal cost includes both the cost of producing the resort unit and operating it. Thus, the long-run marginal cost per resort unit is the sum of the two, which is $15,000 + $750 = $15,750.

If Gorgeous Sands Resort Has a Constant Marginal Cost of $15,000