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Suppose That a Firm's Output Increases from 525 to 625

Question 125

Essay

Suppose that a firm's output increases from 525 to 625 units and its total cost increases from $57,750 to $75,000,and if the price of inputs and technology remain unchanged,is the firm operating in the downward sloping or upward sloping part of the long-run average cost curve?

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The average cost of 525 units is $110 an...

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