Question

A college charges a basic fee of $100 per semester plus an additional fee of $50 per credit hour. You take 10 credit hours this semester. The marginal cost to you of the 10th credit hour this semester is:

Answer 1

The marginal cost of the 10th credit hour is $50, as it's the additional fee per credit hour the college charges beyond the basic semester fee.

Step-by-step explanation:

The question asks about the marginal cost of the 10th credit hour at a college that charges a fixed fee plus a fee per credit hour. The college charges a basic fee of $100 per semester and an additional fee of $50 per credit hour. When you take 10 credit hours, the cost for the 10th credit hour is simply the additional fee per credit hour, which is $50. There is no additional cost beyond the $50 for taking the 10th credit because the basic fee remains the same regardless of the number of credit hours taken.

Answer 2

The marginal cost of the 10th credit hour this semester is:

= $50

Step-by-step explanation:

a) Data and Calculations:

Basic fee (Fixed cost) per semester = $100

Additional fee per credit hour = $50

Taking 10 credit hours will cost = $600 {$100 + ($50 * 10)}

b) Marginal cost is the differential change in the total cost that is incurred when the credit hours are increased by one credit hour by the student for this semester. It is also equal to the $50 that the college charges per credit hour.