A planned freeway connecting two cities was originally thought to cost $200. After building part of the system at a cost of $150 million, the government realised that the total cost of the system would be $260 million. At this point the MARGINAL cost of completing the freeway is bes estimated as
A) $60 million
B) $50 million
C) $260 million
D) $110 million
2006-08-29 02:10:05 · 2 answers · asked by Tomato 1 in Social Science ➔ Economics
Answer is D, $110 million. This happened to me when I contracted to have a hospital built on the back 40 of my property in case I got sick. Inflation really sucks, don't you think?
2006-08-29 02:17:04 · answer #1 · answered by ALWAYS GOTTA KNOW 5 · 0⤊ 0⤋
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced (or purchased) changes by one unit.
MC= dTC divided by dQ
I answer questions. I don't do homework....sorry!
2006-08-29 09:20:17 · answer #2 · answered by Gray Matter 5 · 1⤊ 0⤋