The information below applies to a competitive firm that sells its output for $40 per unit.

When the firm produces and sells 150 units of output, its average total cost is $24.50.

When the firm produces and sells 151 units of output, its average total cost is $24.55.

Refer to Scenario 15-2. Suppose the firm is producing 150 units of output and its fixed cost is $975. Then its variable cost amounts to

a. $2,612.75.

b. $2,500.00.

c. $2,700.00.

d. $2,360.25.