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It Costs a Company $40,000 to Produce 4000 Basketballs

Question 117

Multiple Choice

It costs a company $40,000 to produce 4000 basketballs.The company's cost will be $40,009 if it produces an additional basketball.If the company produces 4,000 basketballs then


A) its average cost is greater than its marginal cost.
B) its average cost and its marginal cost are equal.
C) its average cost is less than its marginal cost.
D) there is insufficient information to compute average and marginal costs..

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