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:

Limbic System

A complex system of nerves and networks in the brain, involved in instinct and mood control, governing emotional behavior.

Implicit Memory

A type of memory that enables individuals to perform tasks without conscious awareness of these previous experiences.

Explicit Memory

The type of long-term memory that involves conscious recollection of facts and experiences.

Neural Activity

The electrical and chemical processes within neurons that allow the brain and nervous system to function.