suppose the average cost of producing 150 gas stoves is $65 per stove and the ma

Question

suppose the average cost of producing 150 gas stoves is $65 per stove and the marginal cost at x=150 is $60 per stove. interpret these costs.

A. each of the first 150 stoves cost, on average, $60 to produce. When 150 stoves have already been produces, the 151st stove costs approximately $65 to produce.

B. the first 150 stoves cost, on average, $65 to produce. When 150 stoves have already been produces, the 151st stove costs approximately $60 to produce.

C. each of the first 150 stoves cost, on average, $65 to produce. When 150 stoves have already been produces, the 151st stove costs approximately $65 to produce.

D. each of the first 150 stoves cost, on average, $65 to produce. When 150 stoves have already been produces, the 151st stove costs approximately $60 less to produce.

Explanation / Answer

(A) The marginal cost is $65 at x=150 and also marginal cost is less than average cost

(B) The marginal cost of stove is $60 at x=150

(C) The marginal cost is $65 at x=150

(D) The marginal cost of stove is $60 at x=150

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