Sarah Lives in a Part of the Country Where There

question 15

Multiple Choice

Sarah lives in a part of the country where there are droughts.Consequently,the water company increases the cost per CCF of water based on usage.The piecewise function shows the rate schedule. If Sarah used 210 CCF of water last month,what was she charged?

• A) $37.80
• B) $38.80
• C) $39.80
• D) $47.00

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Definitions:

MC

is an abbreviation for Marginal Cost, which represents the change in total cost that arises when the quantity produced is incremented by one unit.

ATC

Average Total Cost is determined by dividing the total production expense by the output quantity.

Perfectly Competitive Firm

A firm that operates in a market where there are many buyers and sellers, the products are homogeneous, and no single buyer or seller can influence the market price.

Marginal Revenue

The additional income generated from selling one more unit of a product is known as marginal revenue.