A firm's average total cost is minimized at $5/unit when it produces 10 units.What is the marginal cost when the firm produces 10 units? A)Less than $5/unit B)Greater than $5/unit C)$5/unit D)$10/unit

Question

A firm's average total cost is minimized at <>$5/unit when it produces 10 units.What is the marginal cost when the firm produces 10 units? A)Less than $5/unit B)Greater than $5/unit C)$5/unit D)$10/unit

Quizplus · Accepted Answer

When the average total cost is minimized, the marginal cost equals the average total cost. Therefore, the marginal cost is $5/unit when the firm produces 10 units.

A Firm's Average Total Cost Is Minimized at <