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Question

Before dropping room prices from $100 to $90, the No-Tell Motel rented 3 rooms. Average total costs were $50 per room. After the price drop, it rents 4 rooms and average total costs increase to $60 per room. The motel's marginal costs of increasing output are
A) $240.
B) $150.
C) $50.
D) $60.
E) $90.

Answer

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