Answer (C) is correct . If seven units can be produced at an average cost of $36.86 each, multiplying that amount by seven produces the total cost of $258.02.
Answer (A) is incorrect because This amount is the total fixed cost. Answer (B) is incorrect because This amount is the total variable cost. Answer (D) is incorrect because This amount is the total cost if average total cost for seven units were $40.00.
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