Hello Timucin!
When thinking about marginal cost, we know that marginal cost has to do with the extra cost that has to do with making an extra delivery. From what I understand in this question, there are a lot of costs that don't actually directly correlate to the cost of one trip (E.x: Daily eight-hour basis of renting a van, payment to van drivers, etc). Since the only cost in this question that has to do with each "marginal" delivery is the fuel cost, I would think that the marginal cost of the ninth delivery would be $20, the cost of the fuel. You could argue that you may need to rent vans for a longer period of time, or if the driver's annual salary was broken down into a 'cost-per-delivery' basis. However for the sake of assumptions I'm only assuming that I'm paying an additional $20 fuel costs for each delivery.
Hopefully this helps!
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Jin-Hwan Ro
Student
Grand Rapids MI
United States
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Original Message:
Sent: 10-04-2022 02:18 AM
From: TIMUCIN ONER
Subject: PART 2 MARGINAL COST
Dear CMA Friends,
I am so confused in this question...
A small delivery company received an order that requires nine deliveries lasting two hours each on the same day. The company owns two vans that together can make eight trips per day. The company can rent a van on a daily eight-hour basis for $72, and the fuel cost is $20 per trip. The company has several van drivers, each of whom earns $30,000 annually and is expected to make 1,000 deliveries each year. The marginal cost of the ninth delivery is
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TIMUCIN ONER
Director/Manager
ANTALYA
Turkey
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