Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

A water company has the monopoly in the water market and sells 7 units of output at $5.00 per unit and 8 units of output at $4.90 per unit. If the water company produces and sells the eighth unit, what must its marginal cost be

Sagot :

Answer:

$4.20

Explanation:

First and foremost, the marginal cost is the cost incurred in producing an extra unit of output, in this case, the marginal cost of eight-unit is the extra cost of producing one more after 7 units have been produced

Total Cost of producing 7 units=$5.00*7=$35.00

Total Cost of producing 8 units=$4.90*8=$39.20

Marginal cost of eight unit=Total Cost of producing 8 units-Total Cost of producing  7 units

Marginal cost of eight unit=$39.20-$35.00

Marginal cost of eight unit=$4.20

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.