Surely not.
If I could read and understand your graph I would be driving a 200 series
Marginal cost is the change in total cost when another unit is produced; average cost is the total costdivided by the number of goods produced.
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Marginal cost is the change in total cost when another unit is produced; average cost is the total costdivided by the number of goods produced.
Phils buys equipment to make 9 attic racks for $90. Phils average cost is $10/ unit.
Phil buys enough to make 10 attic racks and only cost $98.
Phils marginal cost to make that one extra rack was $8
The 10th rack brought Phils average cost down from $10/unit to $9.80/unit.
Someone wants Phil to realize the benefits of making at one additional rack.
Pre dibs on GEM car when it's time to go, will take dog if required.
Could be a topic at a CSC meeting. CSC business 101Phils buys equipment to make 9 attic racks for $90. Phils average cost is $10/ unit.
Phil buys enough to make 10 attic racks and only cost $98.
Phils marginal cost to make that one extra rack was $8
The 10th rack brought Phils average cost down from $10/unit to $9.80/unit.
Someone wants Phil to realize the benefits of making at one additional rack.
Saddletramp
GOLD Star
I'm pretty sure Phil has a better grasp of defrayed cost, supply side economics or trickle down economics than most of us. He sells tons of stuff, mostly with a modest margin. I don't think Phil needs our education to increase production or raise cost to the consumer, he does this by controlling supply to create more demand.
Warren Buffet and Charlie Munger might show up if Phil was giving lessons on his version of marginal cost.
Warren Buffet and Charlie Munger might show up if Phil was giving lessons on his version of marginal cost.
