Scenario 13-2 Assume a Certain Firm Is Producing Q = 1,000 Units

question 112

Multiple Choice

Scenario 13-2
Assume a certain firm is producing Q = 1,000 units of output.At Q = 1,000,the firm's marginal cost equals $20 and its average total cost equals $25.The firm sells its output for $30 per unit.
-Refer to Scenario 13-2.At Q = 999,the firm's total costs equal

• A) $24,970.
• B) $24,975.
• C) $24,980.
• D) $25,025.

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Definitions:

Production Function

A mathematical representation that describes the relationship between inputs used in production and the resulting output.

Output

The aggregate sum of products or services generated by a business, sector, or economic system.

Cost

The value of everything a company gives up to produce goods or services, including materials, labor, and overhead expenses.

Units

Standard measures or quantities used to specify or quantify an amount of something.