QUESTION 24 A firm is currently producing 10 units. Its fixed costs are $100 and its variable costs are $40. When it produces 11 units total cost increases to 147. From this we can deduce that the average total cost is: OA Equal to MC OB. constant OC decreasing OD. increasing QUESTION 25 A firm in a perfectly competitive market is producing an output of 4000 units. The price for the commodity is $ 1 and it incurs the following costs: fixed costs $ 2000, marginal cost-$ 1.10 and total variable cost- $1000. The firm is: A making a positive economic profit B. making a zero economic profit C. not maximizing profits and it could do so by increasing output D Producing at an output where AVC MC