A certain competitive firm sells its output for $20 per unit.The 50th unit of output that the firm produces has a marginal cost of $22.Which of following is not necessarily true?

Question

Quizplus · Accepted Answer

Option A is true because the firm sells the 50th unit for $20, thus increasing its total revenue by $20.
Option B is true because the marginal cost of producing the 50th unit is $22, which adds to the firm's total cost.
Option C is true because the marginal cost of the 50th unit is greater than the revenue generated, leading to a decrease in profit by $2.
Option D is not necessarily true because the average variable cost of producing the 50th unit can't be determined without knowing the fixed cost and the total output produced. Thus, option D cannot be assumed based on the information provided.

A Certain Competitive Firm Sells Its Output for $20 Per