Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 9

Howell Industries specializes in precision plastics. Their latest invention promises to revolutionize the electronics industry,and they have already made and sold 75 of the miracle devices. They have estimated average costs as given in the following table:
Backus Electronics has just offered Howell $150,000 if it will produce the 76th unit. Should Howell accept the offer and manufacture the additional device?