the cost of a gallon of milk is $1.35. The marginal cost of a gallon of milk on average is $1.20.
1.
This is a simple, but not very accurate, way of showing the marginal cost of a gallon of milk. The idea is that if we buy a gallon of milk at a grocery store, we’ll pay $1.35. That’s because the cost of the milk itself is the cost of the store’s labor, so that’s the price of the milk.
This is a good example of the way things can actually go wrong when using this concept. Suppose we buy some milk at the grocery store and then pay 1.20. Thats because the cost of the milk itself is the cost of the store labor, so thats the price of the milk. Then we drive it to the store, pay the 1.20. Thats because the cost of the milk itself is the cost of fuel, and so is the cost of the store labor.
This idea is a bit more complicated, because the marginal cost of a store labor is not just the cost of the labor. It includes the cost of the fuel and the cost of the transportation of the milk. For example, if we buy the milk for $1.20, we pay the average cost of store labor + the cost of fuel. We pay the cost of the store labor and the cost of the fuel.
It’s a bit more complicated, because we pay for the milk and the food, and not the fuel. But in other cases, we pay the price for the milk, and the cost of the food. For example, if we buy milk for 1.20 (or any price) and we pay 1.20 for food, it’s the cost of the food, and the cost of our transportation, and not the milk.
So if we are going to buy milk for 1.20, we need to make the math work. We just do it once and we know that the cost of the milk is 0.80 and the cost of the food is 1.20.
This is one of those things that I think is pretty obvious, but many of the people who ask me about it seem to think I’m a complete idiot. Like I said, the marginal cost is the amount that we are willing to pay for the goods. It’s like a cost that we can’t avoid.
It really is that simple. The marginal cost of the milk is really just the amount that we buy it for 1.20, which is 0.80. You don’t have to add the cost of the milk and the cost of the milk carton and the cost of the milk cow to the milk price, you can just say 0.80.
So the marginal cost of a gallon of milk is 0.80. The marginal cost of buying a gallon of milk is 0.80. The marginal cost of doing a gallon of milk is 0.80. If you buy this gallon of milk for $1.20, you are basically buying 0.80 gallons of milk. If you sell it for $1.20 and buy another gallon of milk, you have a total cost of $1.
