A flat marginal cost curve prior to capacity being reached suggests that the marginal cost of providing entrance to the 100^th person is

Question

Quizplus · Accepted Answer

A flat marginal cost curve suggests that the cost of producing one more unit is the same regardless of the quantity produced. Therefore, the marginal cost of providing entrance to the 1000th person is the same as that of providing entrance to the 100th person, and so on. Hence, the marginal cost of providing entrance to the 100^th person is the same as that of the 1000^th person, and the answer is A.

A Flat Marginal Cost Curve Prior to Capacity Being Reached