Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. At Q = 999, the firm's total cost amounts to
A) $10,985.
B) $10,990.
C) $10,995.
D) $10,999.

Question

Quizplus · Accepted Answer

At Q = 999, the firm's total cost is equal to its average total cost at Q = 1,000 multiplied by 999 units. Therefore, the firm's total cost at Q = 999 is $11 x 999 = $10,989.

Assume a Certain Competitive Price-Taker Firm Is Producing Q =