The total cost of 500 players is
= 500 × $200
= $100,000
The total cost of 510 players is
= 510 × $205
= $104,550
Now the marginal cost is 510 player is $550 which is difference between the $100,000 and $104,550 that is higher than the offered price i.e $550
Therefore, the offer should not be accepted
