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One of your firm’s suppliers discounts prices for large quantities. The first 1000 parts are $15 each.

Question

1. One of your firm’s suppliers discounts prices for large quantities. The first 1000 parts are $15 each.

The next 2000 are $13 each. All parts in excess of 3000 cost $12 each. What are the average cost and marginal cost per part for the quantities: show all work

(i) 1700

(ii) 3800

(iii) 1200

(iv) 900

Show all works.

Economics