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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___________.

Respuesta :

Answer:

Marginal cost is greater than its average cost.

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.

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