Total cost of producing units


Problem: If the total cost of producing 10 units is $100 and the marginal cost of the eleventh unit is $21, then which of the following is NECESSARILY true?

A) Total variable costs of 11 units are $121.

B) Total fixed costs are $79.

C) The marginal cost of the tenth unit is more than $21.

D) The average total cost of 11 units is $11.

E) The average total cost of 12 units is $12

Solution Preview :

Prepared by a verified Expert
Microeconomics: Total cost of producing units
Reference No:- TGS01750281

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)