If a Firm Spends $200 to Produce 20 Units of Output

question 95

Multiple Choice

If a firm spends $200 to produce 20 units of output and spends $440 to produce 40 units of output,then the marginal cost of this increase in output is

• A) $10.
• B) $12.
• C) $20.
• D) $22.

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Definitions:

Cease

To bring or come to an end; a halt or stop.

Estuary

Portion of the ocean located where a river enters and fresh water mixes with salt water.

Tropical Rainforests

Dense forests located in the equatorial zone, characterized by high rainfall and biodiversity.

Soil

The top layer of the Earth's surface, composed of mineral particles, organic matter, water, and air, which serves as a medium for plant growth.