Question 10(5 points)

Table 14-10

Suppose that a firm in a competitive market faces the following revenues and costs:

Quantity

Total Revenue

Total Cost

0

$0

$3

1

$7

$5

2

$14

$9

3

$21

$15

4

$28

$23

5

$35

$33

6

$42

$45

7

$49

$59

Refer to Table 14-10. Which level of production in the table has the lowest average variable cost?

Question 10 options:

a)

1 unit

b)

2 units

c)

3 units

d)

4 units