Asked by ????? ???????? on Sep 23, 2024
Total costs increase from $1,500 to $1,800 when a firm increases output from 40 to 50 units.Which of the following are true?
A) FC = $100
B) MC = $300
C) MC = $30
D) FC = $400
Total Costs
The complete sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.
Output
The total amount of goods or services produced by a company, individual, or process within a given time frame.
MC
MC, or Marginal Costs, refers to the cost associated with producing an additional unit of a good or service, highlighting the incremental expense of production expansion.
- Evaluate how alterations in production levels influence variable and aggregate costs.
- Comprehend the key importance of marginal cost in the refinement of economic activity levels.
Learning Objectives
- Evaluate how alterations in production levels influence variable and aggregate costs.
- Comprehend the key importance of marginal cost in the refinement of economic activity levels.