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Business, 22.04.2020 02:52 kevinmarroquin6

Telesca Inc., a manufacturer of telescopes, currentlyproduces10,000 units per week. The firm's average cost of production has been declining so far. Labor is the only variable input used in production. The operations research team at this firm reports that the marginal cost of producing 10,000 telescopes is lower than both the average total cost and the average variable cost of production. The team believes that average cost will decrease further if production is increased beyond 10,000 units. Which of the following, if true, would strengthen the team's belief?A. Labor turnover increased during the previous month. B. The marginal product of labor has been increasing throughout. C. Demand for Telesca's products reached an all-time high this year. D. The firm is planning to expand its product line to includeastrographs, which are designed to detect meteors and comets. E. Telesca's after-sales service is rated higher than most other firms in the industry.

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