Your construction company has built 50 houses so far this year at a total cost to the company of $8 million. If the company builds a 51st house, its total cost will increase to $8.18 million. What is the marginal cost of the 51st house?**Explanation:**The marginal cost is the additional cost incurred by producing one more unit. Here, the company’s total cost increases from $8 million to $8.18 million when building the 51st house, so the marginal cost is $8.18 million - $8 million = $0.18 million, or $180,000.

Total cost is the total expenses incurred by a producer when he produces goods and services in the…

our construction company has built 50 houses so ar this year at a total cost to the company of $8 nillion. If the company builds a 51st house, its tota ost will increase to $8.18 million. What is the narginal cost of the 51st house?

our construction company has built 50 houses so ar this year at a total cost to the company of $8 nillion. If the company builds a 51st house, its tota ost will increase to $8.18 million. What is the narginal cost of the 51st house?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Your construction company has built 50 houses so far this year at a total cost to the company of $8 million. If the company builds a 51st house, its total cost will increase to $8.18 million. What is the marginal cost of the 51st house?

**Explanation:**

The marginal cost is the additional cost incurred by producing one more unit. Here, the company’s total cost increases from $8 million to $8.18 million when building the 51st house, so the marginal cost is $8.18 million - $8 million = $0.18 million, or $180,000.

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