If a Firm's Total Costs Are $100 When 10 Units

question 42

Multiple Choice

If a firm's total costs are $100 when 10 units of output are produced and $105 when 11 units of output are produced, the marginal cost of the 11th unit is

• A) $1.
• B) $3.
• C) $5.
• D) $9.36.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen over others.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to do one thing instead of another.

Imported

Products or services imported from another country for the purpose of selling them.

Exported

Offerings or goods conveyed from one country to another for the objective of transaction or sale.