A New Machine Comes With 100 Free Service Hours Over The First Year

Additional time costs $50 per hour.What

Question

A new machine comes with 100 free service hours over the first year. Additional time costs $50 per hour. What

are the average and marginal costs per hour for the following service hour quantities?

(a) 75 average = marginal =

(b) 125 average = marginal =

(c) 250 average = marginal =

Microeconomics