When Output Is 20, Fixed Costs Are $100 and Variable

question 1

Multiple Choice

When output is 20, fixed costs are $100 and variable costs are $400. When output rises to 21, fixed costs are $100 and variable costs are $450. This implies that the marginal cost of the last unit of output equals:

• A) $25.
• B) $50.
• C) $500.
• D) $550.

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Definitions:

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The exchange of goods and services between nations without restrictive regulations such as tariffs, duties, or quotas, intended to create more efficient markets.

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The exchange of goods, services, and capital across international borders or territories.

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