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14 September, 04:41

For your next print mail campaign, you learn that the cost to print 5,000 postcards is $4,800 and cost to print 15,000 is $5,500. What is the marginal (extra) cost per postcard for the additional 10,000?

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  1. 14 September, 08:35
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    Answer: 7 cent

    Explanation:

    The term marginal cost refers to the additional cost incurred by producing one more unit of a good or service. Therefore, marginal cost is the change in the total cost of an item when the output increases by a unit.

    In the scenario above,

    Cost of printing 5000 postcards = $4,800

    Cost to print 15000 post cards = $5,500

    Tha marginal cost per postcard for the additional 10,000 postcards will be:

    Change in total cost:

    $5,500 - $4,800 = $700

    Change in quantity:

    15,000 - 5,000 = 10,000

    Marginal cost per unit:

    $700 / 10,000 = $0.07

    $0.07 = 7 cent

    Marginal cost per unit = 7 cent
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