In the Widgit industry, fixed costs are more than marginal cost. Also, Average Total Cost increases after a company produces 1,000 Widgits. What must be true about the marginal cost of the 1001 Widgit? O a. The marginal cost of the 1001 Widgit is LESS than the marginal cost of the 1000 widgit O b. The marginal cost of the 1001 Widgit is the SAME as the marginal cost of the 1000 Widgit O c. None of these are correct O d. The marginal cost of the 1001 Widgit is MORE than the marginal cost of the 1000 widgit O e. The 1001 widgit could cost more or less or the same as the 1000 widgit

In the Widgit industry, fixed costs are more than marginal cost. Also, Average Total Cost increases after a company produces 1,000 Widgits. What must be true about the marginal cost of the 1001 Widgit? O a. The marginal cost of the 1001 Widgit is LESS than the marginal cost of the 1000 widgit O b. The marginal cost of the 1001 Widgit is the SAME as the marginal cost of the 1000 Widgit O c. None of these are correct O d. The marginal cost of the 1001 Widgit is MORE than the marginal cost of the 1000 widgit O e. The 1001 widgit could cost more or less or the same as the 1000 widgit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

In the Widgit industry, fixed costs are more than marginal cost.
Also, Average Total Cost increases after a company produces 1,000
Widgits. What must be true about the marginal cost of the 1001
Widgit?
O a. The marginal cost of the 1001 Widgit is LESS than the
marginal cost of the 1000 widgit
O b. The marginal cost of the 1001 Widgit is the SAME as the
marginal cost of the 1000 Widgit
O c. None of these are correct
O d. The marginal cost of the 1001 Widgit is MORE than the
marginal cost of the 1000 widgit
O e. The 1001 widgit could cost more or less or the same as the
1000 widgit

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