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Consider the following table that relates average cost and total cost to the amount produced for a firm. Suppose your company plans to make 51

Consider the following table that relates average cost and total cost to the amount produced for a firm.

Suppose your company plans to make 51 units this month, and all 51 units have been sold.A potential customer calls, asking to purchase one unit for $75.If your objective as a manager is to maximize profits this month, should you accept (produce 52) or reject the offer (continue to produce 51), and for what reason?

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reject the offer because $75 is less than the $77 marginal cost to produce one more

accept the offer because $75 is greater than the $26 cost on average to make each one

reject the offer because $75 is less than the $1,352 cost of making 52

accept the offer because $75 is better than nothing

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