Scenario 14-4
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
-Refer to Scenario 14-4. Suppose the firm is producing 150 units of output and its fixed cost is $975. Then its variable cost amounts to
A)$2,360.25.
B)$2,500.00.
C)$2,612.75.
D)$2,700.00.

Question

Quizplus · Accepted Answer

The Answer of Scenario 14-4
The information below applies to a competitive firm that sells its output for $40 per unit.
• When the firm produces and sells 150 units of output, its average total cost is $24.50.
• When the firm produces and sells 151 units of output, its average total cost is $24.55.
-Refer to Scenario 14-4. Suppose the firm is producing 150 units of output and its fixed cost is $975. Then its variable cost amounts to
A)$2,360.25.
B)$2,500.00.
C)$2,612.75.
D)$2,700.00.

Scenario 14-4 The Information Below Applies to a Competitive Firm That Sells