the marginal costs of having children
âHowever, if you have three kids, ages 11, 13, and 16, your costs will be $25,880 â in other words, the third kid is costing just $2,880 extra.â. And very big families, she says, believe this is true.âAll of them told me that the marginal cost of children falls precipitously,â she said.âIâm sure this is partly true, though it also depends on what you plan to do for the kids â most of them donât plan to pay for college. They also tend not to buy plane tickets for 16 people.â. Her conclusions so far:arsing Department of Agriculture data (click here and see Page 7) she finds that âif you have two kids, ages 13 and 16, your costs as a middle-income family will be $23,000 per yearâ to feed, house and clothe them.
So we must find out if marginal cost is greater than or less than $300. To do this, calculate total cost for 200 doses and 201 doses, and calculate the increase in total cost. Multiplying quantity by average total cost, we find that total cost rises from $40,000 to $40,401, so marginal cost is $401.ith marginal cost of $1,000 per diamond, or $1 million per thousand diamonds, the monopoly will maximize profits at a price of $7,000 and a quantity of 6,000. Additional production beyond this point would lead to a situation where marginal revenue is lower than marginal cost.