Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units

question 513

Multiple Choice

Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
-Refer to Scenario 14-2. At Q = 999, the firm's total costs equal

• A)$24,970.
• B)$24,975.
• C)$24,980.
• D)$25,025.

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Definitions:

Utility

A measure of satisfaction or pleasure that a person gains from consuming goods and services.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer gains from consuming one more unit of a good or service.

Hot Dogs

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.

French Fries

Strips of potatoes that are deep fried until crisp and are often served as a side dish or snack.