Asked by Elorah Stoner on Jun 26, 2024
Verified
If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is
A) $1.
B) $5.
C) $8.09.
D) $10.
Marginal Cost
The cost associated with producing an extra unit of output, crucial for decision-making in production and pricing strategies.
Total Costs
The complete amount of costs incurred by a business to produce a specific amount of goods or services, including fixed and variable costs.
- Determine the implications of changes in output on total costs, marginal costs, and average costs.
Verified Answer
AW
Angelica WartersJun 27, 2024
Final Answer :
D
Explanation :
The marginal cost of the 11th unit is calculated by subtracting the total cost at 10 units from the total cost at 11 units, which is $90 - $80 = $10.
Learning Objectives
- Determine the implications of changes in output on total costs, marginal costs, and average costs.