As output expands from 199 to 200 units,total costs rise from $2,985 to $3,000.At this stage,the marginal cost and average cost of production are
A)$1 and $200.
B)$15 and $15.
C)$29.85 and $15.00
D)$1.

Question

Quizplus · Accepted Answer

The marginal cost is the change in total cost when output increases by one unit, which is $3,000 - $2,985 = $15. The average cost is the total cost divided by the number of units, which is $3,000 / 200 = $15.

As Output Expands from 199 to 200 Units,total Costs Rise