# Economics

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• Apr 11th 2008, 03:41 PM
Celia
Economics
In the short run a firm's total costs of producing the hundredth unit of output equal $10,000. if itproduces one more unit, its total costs will increase to$10,150.
A) What is the marginal cost of the 101 st, unit of out put?
B) What is the firm's average total cost of producing 100 unit?
C) What is the firm's average total cost of producing 101 units?
• Apr 11th 2008, 04:11 PM
TheEmptySet
Quote:

Originally Posted by Celia
In the short run a firm's total costs of producing the hundredth unit of output equal $10,000. if itproduces one more unit, its total costs will increase to$10,150.
A) What is the marginal cost of the 101 st, unit of out put?
B) What is the firm's average total cost of producing 100 unit?
C) What is the firm's average total cost of producing 101 units?

I may be remembering this wrong but I think marginal cost is

$\displaystyle \frac{dC}{dx}|_{x=101} \approx \frac{C(101)-C(100)}{101-100}=\frac{10150-10000}{101-100}=150$

for B, and C just find the averages