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 1,000 units * $11 (average total cost) = $11,000. 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 Q =