Final answer:
The question pertains to the concept of marginal cost in business economics, exemplified by the cost of producing additional computer systems and the effect of economies of scale on production costs for different quantities of toaster ovens.
Step-by-step explanation:
The subject is business, specifically focusing on production costs within the context of economics. The student's question relates to the calculation of marginal cost and understanding the cost of producing a certain number of items. Marginal cost is the cost of producing one additional unit of a product or service. In this context, the student has provided information stating that the marginal cost is $130, and 70 items cost $9300 to produce.
Using this information as a reference, we can examine how a computer company produces affordable, easy-to-use home computer systems and its associated costs. The company has fixed costs of $250, and the marginal cost of producing each computer varies, scaling up from $700 for the first unit to $500 for the seventh unit. This helps us understand that the costs are not fixed per unit and can vary depending on the quantity produced.
Additionally, when discussing economies of scale, we can observe that as production scales up, average costs per unit can decrease up to a certain point, as demonstrated with toaster ovens in production plants of different sizes, with costs ranging from $30 to $10 per unit based on the quantity of production.