Question

For the fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat 100 meals, your marginal cost of the 100th meal is: Group of answer choices

Answer 1

Answer:

$6

Explanation:

Marginal cost is additional cost for producing one extra unit of product

The given parameters are;

The amount paid for the semester meal plan = Nonrefundable $600

The number of meals that can be eaten with the meal plan = 150

The number of meals ate = 100

Therefore, at $600, the marginal cost of the 100th meal is the cost of producing 100 meals at $600 given as follows;

Marginal cost of a meal = Total amount paid for the semester meal plan/(Total number of meals taken)

The marginal cost of the 100th meal = $600/100 = $6.00

The marginal cost of the 100th meal  = $6.00