If there was just one of each animal, the outcome would be that of 1 cow and 1 dog.
Option(B) is correct.
The average cost, or how much it generally costs to produce a unit, can be discovered using the cost function.
If you own two cats worth $100 each and a cow worth $2,500. One dog, though, is worth $7000.
Cost of 1 cow = $2500
Cost of 2 cats = $100
Thus, cost of 1 cat = $100/2 = $50
Cost of 1 dog = $7000
If there was only 1 of each animal, total cost = $(2500+50+7000) = $9550.
This outcome resembles the situation of having 1 cow and 1 dog.
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