Question

# Marginal cost calculation ! Jane needed furniture for her apartment so she went to IKEA. After...

Marginal cost calculation !

Jane needed furniture for her apartment so she went to IKEA. After picking out what she needed, her total added up to 2,200 dollars. There is a 100 dollar delivery fee if she spends less than 2,500 dollars.
What would be the marginal cost to jane if she added a dresser priced for 600 dollars to her order?

Economics- Marginal Cost - Help

Total amount of the products she initially picked = \$2,200.

Now, since this amount is less than \$2,500, she will be charged a delivery fee of \$100.

So, the total amount to be paid by her will be \$2,300.

Now, if she adds a product worth \$600.

She will produce a total of \$(2,200 + 600) = \$2,800 worth of products.

Now, since that exceeds \$2,500, she will not be charged \$100 delivery fee and the total amount to be paid by her will be \$2,800.

The marginal cost for this problem will be \$(2,800 - 2,300) = \$500.