Purchase Solution

Marginal Costs

Not what you're looking for?

Ask Custom Question

A driver wishes to buy gasoline and have her car washed. She finds that the wash costs $3.00 when she buys 19 gallons at $1.00 each, but that if she buys 20 gallons, the car wash is free. Thus the marginal cost of the twentieth gallon of gas is:
A) -$2.00.
B) $0.00.
C) $1.00.
D) $2.00.
E) none of the above.

Purchase this Solution
Solution Summary

The marginal costs of gasolines are determined. The solution answers the question(s) below.

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Short-run marginal cost curves

    No it is not - suppose marginal costs increase, but at an earlier time the costs were sufficiently high that average costs still exceed the current marginal costs. d.

  • Marginal & Average Cost Curve

    Answer (E): This is because of the presence of fixed costs in the short run. Fixed costs added to the variable costs is the total costs. Thus the average total cost curve is always above the marginal cost curve.

  • Analyze Cost and Role in Decision Making

    These costs are important considerations in capital budgeting decisions. 2. Relationship between marginal benefit and marginal costs. How is marginal benefit measured, and how does it relate to marginal costs?

  • Marginal Cost

    If there are diminishing returns, the marginal cost curve must be positively sloped. c. Marginal costs decrease as output increases because the firm can spread fixed costs over more units

  • graph to investigate cost-volume-profit relationships

    Marginal Revenue equals Marginal Costs b. Total Sales equals Total Expenses c. Marginal Revenue equals Fixed Costs d.

  • Marginal cost - Comparing Marginal and Average Concepts

    Marginal cost is, essentially, the cost of producing one more unit. For example, consider a factory that makes widgets. The company has overhead costs, material costs, and labor costs associated with the production of widgets.

  • efficient level of precaution

    If the marginal costs of precaution do not rise with the level of precaution taken, the efficient level of precaution (X*) will be less than if the marginal costs of precaution increase with the level of precaution taken?

  • Decreasing Productivity and Increasing Costs

    411681 Decreasing Productivity and Increasing Costs What is the relationship between diminishing marginal productivity and increasing marginal costs? Give examples. Productivity is the amount of output produced by a single unit of input.

  • Cost Curves

    Answer (C): If the average costs are increasing, the marginal cost curves are above the average cost curve. Answer (D): No if marginal cost curves are increasing, the average cost curve can be above or below the marginal costs.

  • Simple questions on basic economics

    Question 8 The breakeven level of output occurs where: marginal cost equals average costs. marginal profit equals average costs.

View More Related Solutions