A competitive firm's short-run supply curve intersects its average-total-cost curve at the point (Q = 450, P = $22). What is the value of marginal cost at Q = 450?

Average-Total-Cost Curve

A graphical representation in economics that shows how the average total cost of production changes as the quantity of output is altered.

Marginal Cost

The elevation in costs incurred by the creation of an additional unit of a good or service.

Gain an insight into the theory and effects of average and marginal costs in the realm of organizational activities.
Determine the financial outcome, either profit or loss, by applying the theories of total revenue, average revenue, and marginal revenue.

Verified Answer

Final Answer :

The firm's marginal cost at Q = 450 is $22.

Learning Objectives

Gain an insight into the theory and effects of average and marginal costs in the realm of organizational activities.
Determine the financial outcome, either profit or loss, by applying the theories of total revenue, average revenue, and marginal revenue.