A Firm Estimates That When Output Is 10, Its Total

Multiple Choice

A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:

A) $20 and the minimum point of the average total cost occurs at an output level less than 11.
B) $20 and the minimum point of the average total cost occurs at an output level greater than 11.
C) $90 and the average total cost is minimized.
D) $90 and the minimum point of the average total cost occurs at an output level greater than 11.