A computer manufacturer can produce 5 computers for $5,000 and 10 computers for $7,500.Based on this information,what is the marginal cost per computer of the 6^th through 10^th computers?

Question

Quizplus · Accepted Answer

The marginal cost is the change in total cost divided by the change in quantity. In this case, the change in total cost is $7,500 - $5,000 = $2,500, and the change in quantity is 10 - 5 = 5. Therefore, the marginal cost is $2,500 / 5 = $500.

A Computer Manufacturer Can Produce 5 Computers for $5,000 and 10