Ans: $70
Explanation:
Total cost of producing 4 units of output = ATC * Quantity = $45 * 4 = $180
Total cost of producing 5 units of output = ATC * Quantity = $50 * 5 = $250
Marginal cost = Change in total cost / Change in Quantity
Marginal cost of the 5th unit = ( $250 - $180 ) / ( 5 -4 ) = 70 / 1 = $70
A firm is producing 4 units of output at an average total cost of $45. When...
A firm is producing 4 units of output at an average total cost of $50. When the firm produces 5 units of output, average total cost falls to $45. What is the marginal cost of the fifth unit of output? A. $10 B. $25 C. $45 D. $70
Refer to the table below. What is the total cost of this firm when it doesn't produce any output? The following table shows the total output, variable costs, fixed costs, total costs, average total costs, and marginal costs of a firm, with some cells in the table intentionally left blank. Total Output Variable Costs Average Total (units) ks) Fixed Costs ($) Total Cost ($) Cost (5) Marginal Cost (S) 100 n.a. 10 5 10 122 17 8.24 Refer to the...
e total cost 19. For a certain firm, the 10th unit of output marginal cost of Sto. It follows that the production of the 10th it fo r of outputut the firm produse marinat revenue of land them the firm's profi not the 100th unit of t h e firm's average total costs C. Firm's profit-maximize ve futut is less than 100 units. d. production of the 101st unit of output the lost unit of output must increase the firm's...
please show work Shanno 4. Suppose a firm is producing 5 units of output, and V is 15 What is 5. Suppose that when a firm adds 2 units of Lit adds 10 units to output. If the firm is paying $2 per unit of what is MC between 2 and 10 units of output? 6. Suppose that the variable cost of producing 5 units of output is $10, and the ATC of producing 5 units of output is $4....
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Problem3 In the short run, a firm's total costs of producing 5 units of output equal $95. If it produces 6 units its total costs will increase to $117.88. See pages 491-497 a. What is the marginal cost of the 6th unit of output? b. What is the firm's average total cost of producing 5 units? c. What is the firm's average total cost of producing 6 units? d) How is it that the average cost is increasing? Please explain.
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2 3 and 4 b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...