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Part 2: Please read the article “GM’s Volt: The Ugly Math of Low Sales, High Costs”, and 
answer the following questions to the best of your ability with the information provided:  
(Article is available online)
1. What is the Average Total Cost of the Volt? And the Marginal Cost? Please explain 
whether they are different, and why. 
Since 21,500 total number of Volt’s that has been sold since Dec’10, the total cost of producing each car 
is $ 56,000 + $ 20,000 (range from $ 20,000 + $32,000) 
If considered $ 20,000 then total cost of producing 21500 cars = 21,500 * $ 76,000 = 1,634,000,000 
Average total cost of the volt = $76,000 
In this case,

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