Economics Question 5

Economics
Tutor: None Selected Time limit: 1 Day

Jan 20th, 2015

since you know, marginal cost is the change in the total cost that arises when the quantity produced has an increment by unit. That is, it is the cost of producing one more unit of a good.
and in this case marginal cost is $0.

so, the cost will remain $223,000 despite of the quantities.

so, for infinite quantity, the average total cost will approach ZERO


OPTION C is correct.


Thank you!

Jan 20th, 2015

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