Suppose you know the following facts about the Smith Lamp Factory. When they produce 2,500 lamps, the difference between the average total cost and average variable cost is only $1 . If the average variable cost for 5,000 lamps is $8, what is the total cost of producing 5,000 lamps?
a. $2,500
b. $4,000
c. $20,000
d. $40,000
e. $42,500
E
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