57.3k views
5 votes
It costs a company $35,000 to produce 500 graphing calculators. The company’s cost will be $35,080 if it produces an additional graphing calculator. If the company produces 501 graphing calculators then___________.

User Owen Chen
by
8.2k points

1 Answer

3 votes

Answer:

Marginal cost is greater than its average cost.

Step-by-step explanation:

Given that,

Cost of producing 500 graphing calculators = $35,000

Cost of producing 501 graphing calculators =$35,080

Therefore,

The marginal cost = Cost of 501 graphing calculator - Cost of 500 graphing calculator

= $35,080 - $35,000

= $80

Average cost:

= $35,000 ÷ 500

= $70

Therefore, the marginal cost is greater than its average cost.

User Heloise
by
8.5k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.