Scenario 14-4
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
-Refer to Scenario 14-4. When the firm increases its output from 150 units to 151 units, its marginal cost is
A)$29.95.
B)$32.05.
C)$33.00.
D)$34.25.

Question

Quizplus · Accepted Answer

The Answer of Scenario 14-4
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
-Refer to Scenario 14-4. When the firm increases its output from 150 units to 151 units, its marginal cost is
A)$29.95.
B)$32.05.
C)$33.00.
D)$34.25.

Scenario 14-4 The Information Below Applies to a Competitive Firm That Sells