Calculate average cost as total cost divided by output

Steps:

• Identify total cost and output for each firm from the table.
• Compute average cost for Firm A: total cost / output.
• Repeat for Firms B, C, and D.
• Compare the results to find the highest value.

Why A is correct:

• Firm A has the highest average cost, as its total cost divided by output exceeds those of B, C, and D, per the definition of average cost = TC/Q.

Why the others are wrong:

• B: Lower average cost than A due to higher output relative to cost.
• C: Even lower average cost from efficient production scale.
• D: Lowest average cost, with costs spread over maximum output.

Not enough information: The table data is not provided, preventing exact calculations.

Final answer: A