Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000,...

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. At Q = 999, the firm's total costs is $______________. Why?

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Expert Solution

Ans) At Q = 999, the firm's total costs is = $ 24,980

Total cost ( at Q = 1000) = 25* 1000 = 25,000

Subtract marginal cost

Total cost ( at Q = 999) = 25,000 - 20 = 24,980

Rahul Sunny answered 1 year ago

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