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A Firm Has a Fixed Cost of $500 in Its

Question 492

Multiple Choice

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output?


A) $250
B) $275
C) $340.91
D) $350

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