Firm A is currently producing 104 units of output with total variable cost $4 and average fixed cost $248. If firm A is planning to produce 4 additional units from the current production, which increases the average total cost to $2. Calculate the marginal cost based on this information. (Answer with two decimal points)
Firm A is currently producing 104 units of output with total variable cost $4 and average fixed cost $248. If firm A is planning to produce 4 additional units from the current production, which increases the average total cost to $2. Calculate the marginal cost based on this information. (Answer with two decimal points)
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
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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Firm A is currently producing 104 units of output with total variable cost $4 and average fixed cost $248. If firm A is planning to produce 4 additional units from the current production, which increases the average total cost to $2. Calculate the marginal cost based on this information. (Answer with two decimal points)
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