Consider a firm that has fixed costs of $300. The firm also faces a marginal cost of $600 for producing the first unit of output, $200 for producing the second unit, and $100 for producing the third unit. What is the average total cost of producing three units of output?

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d