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What is the marginal cost? where q is the number of engines per week, K is the number of assembly machines, and L is the
What is the marginal cost?
where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for r = $20,000 per week, and each team costs w= $4,000 per week. Engine costs are given by the cost of labor teams and machines, plus $2,000 per engine for raw materials. Your plant has a fixed installation of 5 assembly machines as part of its design. The total cost of producing q units of output (TC) is v TC = 4,000(:0) + 2,000q. TC =100,000 + 4,000(%) + 2,000q. TC =100,000 + 6,000q. q TC-4,000(50 ). TC = 100,000 + 4,000q. The average cost (AC) of producing q machines is V 100,000 100,000 AC = + 2,080. AC = + 2,000. q q q 100,000 AC =100,000 + 4000(5) + 2,000q. AC = T. 100,000 AC = T + 80. The marginal cost (MC) of producing q machines is A. MC = 2,000q. C. MC = 2,080. :9 E. MC=2,080q. 1 D. MC=80Step by Step Solution
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