Identify which two scenarios are examples of marginal costs.
A. A customer is willing to buy more strawberries from a farm when the
farm offers a pick-your-own discount.
B. A customer dislikes the taste of a brand of yogurt and chooses to buy a
new brand of yogurt in the future.
C. An ice cream store costs $225 each day to maintain, even when no ice
cream is sold.
OD. A snowboarding company finds out that customers are generally
unwilling to pay more than $1,000 for one of its snowboards.
E. Each time a cell phone factory produces a phone, it costs the factory
$175 in supplies.
OF. A coffee bean company wants to start selling packaged tea, and this
expansion will cost the company money.

An ice cream store costs $225 each day to maintain, even when no ice-cream is sold.
A snowboarding company finds out that customers are generally unwilling to pay more than $1,000 for one of its snowboards.

What is Marginal Cost?

Marginal cost represents the incremental costs incurred while producing extra devices of a terrific or provider. it's miles calculated via taking the full change within the price of producing more goods and dividing that by way of the change in the number of goods produced.

the usual variable costs included in the calculation are labor and materials, plus the anticipated will increase in constant expenses (if any), such as administration, overhead, and selling fees. The marginal cost formula can be utilized in monetary modeling to optimize the era of cash glide.

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