Scenario 15-2The information below applies to a competitive firm that sells its output for $40 per unit.When the firm produces and sells 140 units of output, its average total cost is $24.5.When the firm produces and sells 141 units of output, its average total cost is $24.60.Refer to Scenario 15-2. Suppose the firm is producing 140 units of output and its fixed cost is $975. Then its variable cost amounts toO a. $9,360.25.O b. $2,455.00.O c. $3,430.00.O d. $7,500.00.

Step 1:Calculate the total cost: We know the firm's average total cost when it produces 140 units is…

Answered: Scenario 15-2 The information below…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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