TheNextOne
New member
- Joined
- Mar 18, 2006
- Messages
- 30
A manufacturer of custom furniture finds that when 18 wood rocking chairs are
made per day, the average cost is $200 and the marginal cost is $100. Based on this, estimate the total cost to make 19 chairs.
How would you evaluate this?
I did the following:
200= Total Cost/q
100= MC
Therfore, TC - 200q= 100
When q = 19, TC= 3700
I dont think this is right. Can anybody give me a hint?
made per day, the average cost is $200 and the marginal cost is $100. Based on this, estimate the total cost to make 19 chairs.
How would you evaluate this?
I did the following:
200= Total Cost/q
100= MC
Therfore, TC - 200q= 100
When q = 19, TC= 3700
I dont think this is right. Can anybody give me a hint?