Question

The information below applies to a competitive firm that sells its output for $40 per unit.

Answer 1

Answer: Option 'c' is correct.

Step-by-step explanation:

Since we have given that

On producing 150 units, its average total cost = $24.50

We need to find the total cost.

As we know that

$Average\ cost=\dfrac{Total\ cost}{No.\ of\ units}\\\\total\ cost=Average\ cost\times No.\ of\ units\\\\total\ cost=24.50\times 150\\\\total\ cost=\ 3675$

Hence, total cost is $3675.00.

Therefore, Option 'c' is correct.