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Price elasticity of demand and Perfect Competition Table 1. Quantity of tomatoes and marginal cost Quantity of organic tomatoes Marginal cost 0 $0 10 $2
Price elasticity of demand and Perfect Competition
Table 1. Quantity of tomatoes and marginal cost
Quantity of organic tomatoes | Marginal cost |
0 | $0 |
10 | $2 |
20 | $4 |
30 | $6 |
40 | $8 |
50 | $12 |
Assume the fixed cost is $140.
Referring to Table 1 above, calculate producer's average total cost in Table 2 above and answer the following questions.
When quantity of organic tomato is 10, the average cost is $
select
a)17
b)16
c)14
d)15
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