The Graph of a Company's Total Cost Function Is Shown

question 219

Multiple Choice

The graph of a company's total cost function is shown. Will the 201st item or the 501st item cost more to produce? ​ ​

• A)201st
• B)501st

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Definitions:

Total Cost

The total of all costs associated with the creation of products or services, encompassing both fixed and variable expenses.

Marginal Cost

The financial outlay for generating an additional unit of a good or service.

Profit Maximizing Price

The price at which a company can sell its product to maximize its profit, balancing between too high to deter consumers and too low to cover costs.

State Government

The government of a specific state within a country, responsible for governing matters not reserved by the federal government.