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Business, 16.11.2020 18:10 natimike10
You produce widgets. Currently you produce 4 widgets at a total cost of $40. Suppose you could produce one more widget (the fifth) at a marginal cost of $5.
Required:
a. If you do produce that fifth widget, what will your average total cost be?
b. Has your average total cost increased or decreased? Why?
c. Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will your average total cost be? Has your average total cost increased or decreased? Why?
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You produce widgets. Currently you produce 4 widgets at a total cost of $40. Suppose you could produ...
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