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Q. Assume that there are just two firms in a small marketplace. Acme Manufacturing's Total Costs equal $100 + $3 Qty. Generic Industries' Total Costs equal $500 + $3 Qty.
If each firm is making the same quantity,
a. Acme has lower average total costs than Generic.
b. Acme's average total costs are equal to Generic's variable costs.
c. Acme has higher average total costs than Generic.
d. At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
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