A Firm Estimates That When Output Is 10, Its Total

question 41

Multiple Choice

A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:

• A) $1.
• B) $20.
• C) $90.
• D) $900.
• E) $920.

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Definitions:

Standard Deviation

A statistical metric that quantifies the dispersion or variability of a dataset relative to its mean.

Mean

The average of a set of numbers, calculated by dividing the sum of the values by the number of values.

Standard Normal Variable

A standard normal variable is a random variable that follows a normal distribution with a mean of zero and a standard deviation of one.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, serving as a basis for comparison for other distributions.