A firm producing 10 units of output incurs a total cost of 800. When it produces 11 units, the total cost increases to 890. What is the marginal cost of producing the eleventh unit?
A) 10
B) 80
C) 90
D) 100
Question 2
An individual has 8 hours to spare. He has to divide his time between two activities: reading and writing. Which of the following allocations will exactly satisfy the individual's budget constraint?
A) 3 hours of reading and 4 hours of writing
B) 4 hours of reading and 6 hours of writing
C) 2 hours of reading and 2 hours of writing
D) 5 hours of reading and 3 hours of writing
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