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Luna Supplies Offers to Lease a Plotter on a 12-Month

Question 8

Multiple Choice

Luna Supplies offers to lease a plotter on a 12-month contract for a basic rental of $500 per month plus a fee of $10 per A1-sized plot. Consider a customer who prints 50 plots a month. What is their (i) average and (ii) marginal cost per plot?


A) (i) $500. (ii) $10.
B) (i) $10. (ii) $10.
C) (i) $10. (ii) $60.
D) None of the above.

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