Question

1) Consider the market for underground bunkers, Zombie movies have caused a spike in demand. Jennifer's construction company has built 50 bunkers so far this year at a total cost to the company of $8 million. If the company builds a 51st bunker, its total cost will increase to $8.18 million. What is the marginal cost of the 51st bunker?

Answer 1

Answer:

2. Marginal cost is the additional cost to produce 1 more unit

Total cost of 50 bunkers= 8000000

Total cost of 51 bunkers= 8180000

So, marginal cost of the 51st bunker 180000