Carol's Steakhouse, the total cost of serving 150 customers per day is $900. Carol is interested in increasing her business, but is concerned about the effect on marginal cost.
Carol successfully increases her business to 200 customers per day. However, her total cost for doing so is 50% greater than the expected $1,600. What percent greater is the actual marginal cost than the expected marginal cost, to the nearest full perc
Answer:
214
Explanation:
We have been given
C1 = $900
Q1 = 259
Then c2 = $1600
Q2 = 200
M = 1600-900/50
= 14
For real,
C1 = 900
C2 = 2400
Q1 = 150
Q2 = 50
1500/50 = 30
30/14 x 100
= 214
It is greater by 214 percent