Scenario 9-1 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.
Refer to Scenario 9-1. 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

The total cost at Q = 1,000 is $11,000 (1,000 units * $11 average total cost). The marginal cost of producing the 1,000th unit is $15, so the total cost at Q = 999 is $11,000 - $15 = $10,985.

Scenario 9-1 Assume a Certain Competitive Price-Taker Firm Is Producing