Use the Information Below to Answer the Following Questions

Use the information below to answer the following questions.
Fact 14.3.3
Suppose that Roots' marginal cost of a jacket is a constant $125.00 and the total fixed cost at one of its stores is $1,500 a day. This store sells 20 jackets a day, which is its profit-maximizing number of jackets. Then the stores nearby start to advertise their jackets. The Roots store now spends $2,000 a day advertising its jackets, and its profit-maximizing number of jackets sold jumps to 70 a day.
-Refer to Fact 14.3.3. Before the advertising begins, the average total cost of a jacket sold in this store is

A) $200.00.
B) $175.00.
C) $150.00.
D) $125.00.
E) $100.00.

Correct Answer:

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