The price faced by the firm in a perfectly competitive market is $45 per unit. The average variable cost of production when the firm produces 3 units of output is

a.

$30.00

b.

$32.00

c.

$33.80

d.

$40.00

e.

$36.70

f.

$31.00

g.

$42.50

h.

$29.25

Total Total Average Average Average Output Fixed Variable Marginal Variable Fixed Total Costs Costs Costs Costs Costs Costs 0 15.00 1 15.00 30.00 15.00 2 15.00 55.00 7.50 3 15.00 35.00 5.00 4 15.00 25.00 3.75 5 15.00 15.00 3.00 O 15.00 26.00 2.50 7 15.00 28.00 2.14 8 15.00 56.00 1.88 9 15.00 60.00 1.67 10 15.00 66.00 1.50