Asked by
Fikayo Akinluyi
on Nov 04, 2024
Verified
If a firm's total costs are $75 when it produces 10 units of output and $80 when it produces 11 units of output, then the marginal cost of producing the 11th unit is
A) $1.
B) $5.
C) $8.09.
D) $10.
Marginal Cost
The price to produce an additional unit of a product or service.
Total Costs
The total expense of manufacturing that encompasses all constant and fluctuating costs.
- Activate the concept of marginal cost and scrutinize its relationship with average and total costs.
- Analyze the impact of changes in production levels on the firm’s marginal cost.
Verified Answer
FS
Learning Objectives
- Activate the concept of marginal cost and scrutinize its relationship with average and total costs.
- Analyze the impact of changes in production levels on the firm’s marginal cost.