Scenario 14-1
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 14-1.At Q = 999,the firm's total cost amounts to

Question

Quizplus · Accepted Answer

At Q = 1,000, the firm's total cost is equal to its average total cost multiplied by its output, or $11 x 1,000 = $11,000. At Q = 999, the firm's total cost will be slightly lower than $11,000, since its average total cost will be slightly lower at this lower output level. The closest answer choice to this amount is $10,990.

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