Fast Food Terminals Taco Casa is considering installing touch screen terminals for patrons to place their food orders. They discovered that installation costs at stores with four screens were $60,000 but were $80,000 at stores with six terminals. What are the marginal costs of installing another terminal at a location?
FC + 4×MC = $60,000 and FC + 6×MC = $80,000 . Subtracting the first equation from both sides yields 2×MC = $20,000 or MC = $10,000.
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