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English
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| Number of pages / Number of words: |
3 / 661 |
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For example, if a company
is producing 10 computers at $110 total cost, and steps up production to 11 computers at $130
total cost, the marginal cost is $20 since only the last computer of production is measured in
order to calculate marginal cost. Marginal cost is an important measurement because it accounts
for increasing or decreasing costs of production, which allows a company to evaluate how much
they actually pay to produce one more computer...
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This occurs when one decides whether to cook a meal at home or go to a restaurant to
eat, or when one decides between purchasing a new luxury car or a low-priced mini van. People
make economic decisions when they decide whether to rent or purchase housing or where they
should attend college. It is about how we allocate resources in the face of scarcity...
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