Assume the following cost information about Fred\'s widget company: Its fixed co

Question

Assume the following cost information about Fred's widget company: Its fixed cost is $27, and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5. Given this information: A) the marginal cost of the third unit is greater than the marginal cost of the first unit. B) the marginal cost of the fourth unit is the same as the marginal cost of the second unit. C) the average variable cost of four units is the same as for three units. D) the average total cost of four units is the same as for three units. E) both b. and c. are correct.

Explanation / Answer

C is the correct option

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