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[43] Marginal cost of the first unit of output equals $200. True A. B. False [44] The average total cost of 3 units of output
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Answer #1

41) Because cost at zero units of output is $1000, fixed cost is $1000

Therefore (D) $1000 is the answer to this question

42) TVC at 2 units = Marginal Cost of 1st + Marginal Cost of 2nd

= $200+$300 = $500

AVC = 500/2 = $250

Therefore (B ) is the answer

43) The given statement is true, because from the table it is seen that MC of first unit is equal to $200

Therefore (a) True is the answer to this question

44) TC at 3 units = $1000+ MC of 1 + MC of 2 + MC of 3

= $1000+$200+$300+$1650

= $3150

ATC = $3150/3 = $1050

Therefore (d) None of the above is the answer

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