Diane is remodeling an apartment that she will rent out to a college student. the renovation is estimated to cost $7,940. if Diane decides to install decorative crown molding...The marginal cost of this choice is
$800
This is further explained below.
<h3>What is the marginal cost of this choice?</h3>
In general, the incremental cost of producing one more unit in a series of production is what is meant to be understood as a product's marginal cost.
Your marginal costs are calculated by dividing the overall change in expenditures by the proportional increase or decrease in quantity:
Marginal Cost (MC) = dC(change in cost) / dQ(change occurring to Quantity)
The marginal cost formula is as follows: change in costs divided by change in quantity
In this particular scenario, the cost of upgrading an apartment comes to $7,940 without including the installation of crown molding.
If, on the other hand, you decide to include crown molding in your project, the total cost would increase to $7,880.
Therefore, the price for making this selection is
The cost of this option is the difference between 8,740 and 7,940, which is $800.
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