-If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that
A) average variable costs are $100.
B) average total costs are $100.
C) average fixed costs are $100.
D) marginal costs are $100.

Question

-If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that
A) average variable costs are $100. 
B) average total costs are $100. 
C) average fixed costs are $100. 
D) marginal costs are $100.

Quizplus · Accepted Answer

The increase in total costs from producing one additional unit (from 1000 to 1001 units) is $100 ($50,100 - $50,000), which defines the marginal cost. Marginal cost is the cost of producing one more unit of a good.

-If Total Costs Are $50,000 When 1000 Units Are Produced