Scenario 14-2 The Information Below Applies to a Competitive Firm That Sells

Scenario 14-2
The information below applies to a competitive firm that sells its output for $45 per unit.
• When the firm produces and sells 120 units of output, its average total cost is $23.5.
• When the firm produces and sells 121 units of output, its average total cost is $23.65.
-Refer to Scenario 14-2. Suppose the firm is producing 120 units of output and its fixed cost is $950. Then its variable cost amounts to

A) $9,360.25.
B) $7,500.00.
C) $2,820.00.
D) $1,870.00.