A Firm Is Producing 4 Units of Output at an Average

question 117

Multiple Choice

A firm is producing 4 units of output at an average total cost of $40. When the firm produces 5 units of output, average total cost rises to $50. What is the marginal cost of the fifth unit of output?

• A) $10
• B) $30
• C) $90
• D) $120

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Definitions:

Past Consideration

Consideration for a contract that has already been provided before the agreement is made, not valid as consideration in most legal systems.

Services Provided

Tasks or activities that are performed for the benefit of another party, usually in exchange for compensation.

Rescinded

Revoked, canceled, or annulled, often referring to contracts that are declared void and without legal effect.

New Price

Refers to the updated or current price of a product or service that may differ from previous pricing.