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Table 12-4

Quantity	Average Fixed Cost	Average Variable Cost	Marginal Cost
20	$40	$18	$18
40	20	14	10
60	13.1	16	20
80	10	22	40
100	8	30	62
120	6.61	40	90

Table 12-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units.


Refer to Table 12-4. If the market price is $45 the firm will produce

• 60 units.

• 80 units.

• 100 units.

• 120 units.

80 units.