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yan [13]
3 years ago
8

Using this table, calculate the marginal cost of each of these quantities of bikes.

Social Studies
2 answers:
LiRa [457]3 years ago
6 0

Answer:

The first bike: $ <u>80</u>

The fourth bike: $ <u>20</u>

The sixth bike: $ <u>50</u>

The seventh bike: $ <u>60</u>

Explanation:

andrey2020 [161]3 years ago
5 0
The marginal cost is how much it costs to produce one item more. It cost 0$ to produce 0 bikes but if you make one, then it costs 80$. Hence the marginal cost for the first bike is 80$. For the fourth bike, we have that the 3 bikes cost 110$ and the 4 bikes cost 130$. Hence it costs 20$ dollars to produce one more bike (from 3rd to 4th) and hence the marginal cost is 20$. Similarly for the 6th bike, we compare the cost of producing 5 bikes to the cost of producing 6 bikes and we get that the marginal cost is 50$. Applying the same methodology, the marginal cost for the 7th bike is 60$.
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