When a Firm Produces 50,000 Units of Output, Its Total

question 207

Multiple Choice

When a firm produces 50,000 units of output, its total cost equals $6.5 million.When it increases its production to 70,000 units of output, its total cost increases to $9.4 million.Within this range, the marginal cost of an additional unit of output is

• A)$41.43.
• B) $134.29.
• C)$135.
• D)$145.

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Definitions:

Mineral Oil

A colorless, odorless, light oil derived from petroleum, used as a lubricant, laxative, and in various industrial applications.

Emollient

A substance that softens and moisturizes the skin, reducing itching and flaking by forming a protective layer on the skin surface.

Lubricant

A substance applied to reduce friction between surfaces in mutual contact, which can also refer to products used to facilitate various medical or personal procedures.

Peristalsis

The series of wave-like muscle contractions that move food through the digestive tract.