Scenario 13-2
Assume a certain firm is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $20 and its average total cost equals $25.The firm sells its output for $30 per unit.
-Refer to Scenario 13-2.At Q = 999,the firm's total costs equal

Question

Quizplus · Accepted Answer

At Q = 1,000, the total cost is 1,000 units * $25 = $25,000. The marginal cost of producing the 1,000th unit is $20, so the total cost at Q = 999 is $25,000 - $20 = $24,980.

Scenario 13-2 Assume a Certain Firm Is Producing Q = 1,000 Units