Assume the following total cost schedule for a perfectly competitive firm.

Output	TVC ($)	TFC ($)
0	0	100
1	40	100
2	70	100
3	120	100
4	180	100
5	250	100
6	330	100

TABLE

9−1

What is the marginal cost of producing the 2nd unit of output?

 

A. $5

B.  $30

C.  $35

D.  $10

E.  $15

Answer rating: 100% (QA)

The perfectly competitive firm earns zero profits at the level where th... View the full answer