01O TS HOt compensated by the person who causes the effect. d. a beneficial effe

Question

01O TS HOt compensated by the person who causes the effect. d. a beneficial effect on a bystander who pays the person who causes the effect. 54. Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is S30, and the marginal cost of the sixth unit of output is S60. What is the average total cost when six units are produced a. $30 b. $25 c. $10 d. $35

Explanation / Answer

Ans: $35

Explanation:

Total cost of 5 units = $30 * 5 = 150

Total cost of 5 units = 150 + 60 = 210

ATC when 6 units are produced = 210 / 6 = $35

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