Scenario 13-3
Suppose a certain competitive firm is producing Q=500 units of output.The marginal cost of the 500th unit is $17,and the average total cost of producing 500 units is $12.The firm sells its output for $20.
-Refer to Scenario 13-3.At Q=499,the firm's total costs equal

Question

Quizplus · Accepted Answer

The total cost at Q=500 is 500 units * $12 = $6,000. The marginal cost of the 500th unit is $17, so the total cost at Q=499 is $6,000 - $17 = $5,983.

Scenario 13-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units