a company $35,000 to produce 500 graphing calculators

Accounting Dec 08, 2020

a company $35,000 to produce 500 graphing calculators. The company's cost will be $35,050 if it produces an additional graphing calculator. If the company produces 500 graphing calculators then a. its average cost is greater than its marginal cost b. its average cost and its marginal cost are equal c. this cannot be determined from this information given

Expert Solution

Marginal cost = 35,050 - 35,000 = 50

Average cost = 35,000/ 500 = 70

The average costid highertahn the margnal cost so option a is correct.

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