FIGURE 8-4

-Refer to Figure 8-4. What are total costs for the firm in Graph B at a market price of $4.90?

Name: FIGURE 8-4 -Refer to Figure 8-4. What are total costs for the firm in Graph B at a market price of $4.90?
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Question

FIGURE 8-4
 
-Refer to Figure 8-4. What are total costs for the firm in Graph B at a market price of $4.90?

Quizplus · Accepted Answer

Looking at graph B, we find the point where the marginal cost (MC) intersects with the market price ($4.90). This point is at a quantity of 100. At this quantity, the total cost (TC) is around $490. Therefore, the answer is D - $490.

FIGURE 8-4 -Refer to Figure 8-4. What Are Total Costs for the Total