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    Calculating marginal cost of production

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    The Copy Center specializes in high-volume printing and color copying for small businesses. This is a fiercely competitive market. The following relation exists between output and total production costs:

    Total Output Total Cost
    0 $ 500
    10,000 3,500
    20,000 7,500
    30,000 12,500
    40,000 18,500
    50,000 25,500
    60,000 33,500
    70,000 45,000

    A. Construct a table showing the marginal cost of production.
    B. What is the minimum price necessary for the company to supply ten thousand copies?
    C. How many copies would the company supply at industry prices of $5,500 and $7,000 per ten thousand?

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    https://brainmass.com/economics/production/363070

    Solution Preview

    Please refer attached file for better clarity of table.

    A. Construct a table showing the marginal cost of production.

    Total output, Q Total Cost, TC Marginal Cost,MC*
    0 500
    10000 3500 0.300
    20000 7500 0.400
    30000 12500 0.500
    40000 18500 0.600
    50000 25500 0.700
    60000 ...

    Solution Summary

    Solution depicts the methodology to calculate marginal cost of production. It also calculates number of copies that will be supplied by the company at given market prices.

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