Question

b. Burger Delight, a fast food restaurant, were considering installing touch screen
terminals for patrons to place their food orders. They discovered that installation costs at
restaurants with four screens were £60,000 but were £80,000 at stores with six terminals.
What are the marginal costs of installing another terminal at this location?
c. Assume now that you do not know the marginal cost, MC. What are the fixed costs of
installing touch screens at this location?

Answer 1