A firm's cost function is C(x) = 300lnx, determine and interpret the marginal cost of the firm when it produces 60 units. a. When the firm produces the 60th unit total cost will decrease by $5. b. When the firm produces the 60th unit total cost will be $5. c. When the firm produces the 60th unit total cost will increase by $5.
A firm's cost function is C(x) = 300lnx, determine and interpret the marginal cost of the firm when it produces 60 units. a. When the firm produces the 60th unit total cost will decrease by $5. b. When the firm produces the 60th unit total cost will be $5. c. When the firm produces the 60th unit total cost will increase by $5.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.7IP
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A firm's cost function is C(x) = 300lnx, determine and interpret the marginal cost of the firm when it produces 60 units.
a.
When the firm produces the 60th unit total cost will decrease by $5.
b.
When the firm produces the 60th unit total cost will be $5.
c.
When the firm produces the 60th unit total cost will increase by $5.
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