Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 13 - Part V - The Costs of Production - Problems and Applications - Page 277: 5

Answer

I should not take the offer of 550 dollars.

Work Step by Step

180000 dollars is the total cost of producing 600 players and for producing an extra unit the cost would rise to 180901 dollars for 601 players. Therefore, the extra unit cost of production would be 901 dollars meaning that the offer should not be taken.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.