Scenario 14-2
Assume a certain 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 14-2.At Q = 999,the firm's total cost amounts to

Question

Quizplus · Accepted Answer

At Q = 1,000, the average total cost is $11, so the total cost is $11,000. The marginal cost at Q = 1,000 is $15, so to find the total cost at Q = 999, we subtract $15 from the total cost at Q = 1,000: 
$11,000 - $15 = $10,985. Therefore, the total cost at Q = 999 is $10,985.

Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units