In the short run, a firm's total costs of producing the hundredth unit of output equal $10,000.?

Question

In the short run, a firm's total costs of producing the hundredth unit of output equal $10,000. If it produces one more unit, its total costs will increase to $10,150.

A. What is the marginal cost of the 101st unit of output?

B. What is the firm's average total cost of producing 100 units?

C. What is the firm's average total cost of producing 101 units?

Answer 1

A: MC(101-th)=$150

B: ATC(100)=10,000/100=$100

C: ATC(101)=10,150/101=$100.495