The graph of a company's total cost function is shown. Will the 201st item or the 501st item cost more to produce?
A)201st
B)501st

Question

The graph of a company's total cost function is shown. Will the 201st item or the 501st item cost more to produce? ​  ​
A)201st 
B)501st

Quizplus · Accepted Answer

The company's total cost function reaches its minimum (i.e. the lowest point on the graph) at approximately the 400th unit. Therefore, the cost of producing the 501st item (which is after this point) will be less than the cost of producing the 201st item (which is before this point).

The Graph of a Company's Total Cost Function Is Shown