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Cost-Minimizing Output Analysis
A small furniture workshop specializes in making handcrafted chairs. The manager claims that the average cost to produce a chair is lowest when they make exactly 25 chairs per month. You are given the following data for the current month: after producing 24 chairs, the average cost per chair is $102. The total cost of producing all 25 chairs is $2,550. Based on this data, is the manager's claim correct? Justify your answer by calculating and comparing the relevant cost figures for the 25th unit.
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