Q1) Mickey Mousetraps Company has total costs of $1,000 at output level of 100. If firm increases production from 100 to 150 units, its total costs are $1,250.
1. How much is marginal cost (MC) per unit for extra production amount of 50 units from 100 to 150? Illustrate your work.
2. How much is average total cost (ATC) at production level of 150? Illustrate your work.
3. Based on the answers to A and B, is ATC rising or falling, and describe why?