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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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