English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

A bank has decided to turn its parking lot into an after hours pay lot. The bank is currently charging $10 per car to park in the lot and the are 100 spaces. The employee is paid $10/hour. What is the marginal revenue and marginal cost for each additional car that pays to use the bank's parking lot?

2007-02-17 11:49:37 · 1 answers · asked by Anonymous in Social Science Economics

1 answers

Discussions about marginal costs and marginal profit can get as philosophical as discussions about fixed and variable costs.
If the employee is hired at the beginning of the project for a fixed amount of hours, then his cost in no longer marginal. Thus, the marginal cost of the parking lot would be US$0 and the marginal revenue would be US$10 multiplied by the number of hours that the car uses the parking lot.

2007-02-21 05:17:32 · answer #1 · answered by MSDC 4 · 0 0

fedest.com, questions and answers