A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:
A. $20 and the minimum point of the average total cost occurs at an output level less than 11.
B. $20 and the minimum point of the average total cost occurs at an output level greater than 11.
C. $90 and the average total cost is minimized.
D. $90 and the minimum point of the average total cost occurs at an output level greater than 11.
Answer: B
You might also like to view...
The price elasticity of supply measures
A) the responsiveness of quantity demanded to a change in price. B) the responsiveness of quantity supplied to a change in price. C) the change in supply due to a change in input prices. D) the change in price due to a change in quantity supplied.
Exit from a market will stop when
A) accounting losses are zero. B) the cost of capital is equal to the risk-free rate of return. C) economic losses are zero. D) none of these choices.
Pollution rights may be traded if
A. polluters try to hide pollution. B. administrators are uncertain about Pigouvian taxes. C. there is no market for pollution. D. pollution is harmless.
Which of the following is not a component of the M1 money supply?
A. demand deposits B. large-denomination (more than $100) bills C. interest-earning checking deposits D. outstanding balances on credit cards