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2 January, 23:51

A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $700. What is the total cost of producing 100 units

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  1. 3 January, 00:18
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    total cost of producing 100 units is $4700

    Explanation:

    given,

    Fixed cost = $200

    Total cost = $4,000

    The total cost of n units = total cost of (n-1) units + marginal cost of nth unit

    The total cost of 100 units = total cost of 99 units+marginal cost of 100th unit

    The total cost of 100 units = $4000 + $700

    =4000+700

    =$4700

    the total cost of producing 100 units is $4700
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