In 2001,Intel spent $7.5 billion to upgrade its facilities so it could produce the Pentium 4 semiconductor chip.Each chip cost $130 to make and sold for $200 each.What is the marginal cost of a Pentium 4 chip?
A)$70
B)$130
C)$200
D)$7.5 billion divided by the number of chips produced
E)$7.5 billion

Question

Quizplus · Accepted Answer

The marginal cost is the additional cost of producing one more unit. In this case, since each chip cost $130 to make, the marginal cost of each additional chip is $130.

In 2001,Intel Spent $7