Solved:
Answered by AI, Verified by Human Experts
Randall Avera Sure, but can you explain marginal cost? Average Variable Cost Average Total Cost Marginal Cost Change in Total Cost MC Change in Total Output - Ту Yes! In my economics class, we learned that marginal cost measures how your total costs change as your output changes. Here is the formula for marginal cost: Randall Got it! Fire away with your question! Ту Okay! What is the marginal cost of washing the 23rd car? Randall $14.00 $3.67 $5.12 Submit Hill Randall Average Total Cost Sure, but can you explain marginal cost? Average Variable Cost Production Data Production Data Workers 0 Ту Cars Washed 0 1 8 Yes! In my economics class, we learned that marginal cost measures how your total costs change as your output changes. Here is the formula for marginal cost: 2 23 Randall 3 42 64 4 80 Got it! Fire away with your question! 6 90 7 98 Ту 8 96 Okay! What is the marginal cost of washing the 23rd car? Randall $14.00 $3.67 $5.12 What are fixed costs and what are variable costs? andall Fixed Costs $550 a day for the car wash Variable Costs The $55 per worker a day )
Randall Avera Sure, but can you explain marginal cost? Average Variable Cost Average Total Cost Marginal Cost Change in Total Cost MC Change in Total Output - Ту Yes! In my economics class, we learned that marginal cost measures how your total costs change as your output changes. Here is the formula for marginal cost: Randall Got it! Fire away with your question! Ту Okay! What is the marginal cost of washing the 23rd car? Randall $14.00 $3.67 $5.12 Submit Hill Randall Average Total Cost Sure, but can you explain marginal cost? Average Variable Cost Production Data Production Data Workers 0 Ту Cars Washed 0 1 8 Yes! In my economics class, we learned that marginal cost measures how your total costs change as your output changes. Here is the formula for marginal cost: 2 23 Randall 3 42 64 4 80 Got it! Fire away with your question! 6 90 7 98 Ту 8 96 Okay! What is the marginal cost of washing the 23rd car? Randall $14.00 $3.67 $5.12 What are fixed costs and what are variable costs? andall Fixed Costs $550 a day for the car wash Variable Costs The $55 per worker a day )
Final answer:Marginal cost measures the additional cost of producing one more unit of output and is calculated by the change in total cost divided by the change in quantity. It plays a key role in production decisions, reflecting the costs that vary with production levels as opposed to fixed costs which remain constant.Explanation:Understanding Marginal CostMarginal cost is a concept in economics that measures the change in total cost when producing one additional unit of output. It is not the average cost over all units, but specifically the cost for the next unit or the additional quantity produced. To calculate marginal cost, you take the change in total cost and divide it by the change in quantity.For instance, if producing an additional 20 units increases total costs from $320 to $400, then the marginal cost would be ($400-$320) / 20, which equals to $4 per unit. This concept is vital because it helps businesses decide how much of a product to produce. Moreover, marginal cost is influenced by the law of diminishing returns, indicating that it will eventually increase as production grows due to factors becoming less efficient.Fixed costs, on the other hand, are expenses that do not change with the quantity produced, such as rent or salaries. Variable costs vary with production levels, such as materials and hourly labor. In the context of a car wash, the fixed costs might include the daily rental of the location, while the variable costs could involve supplies like soap and the wages for additional temporary staff....