Use the Following to Answer Questions

Essay

Use the following to answer questions:
-(Table: Cakes) Look at the table Cakes. Pat is opening a bakery to make and sell special birthday cakes. Her estimated fixed and average variable costs if she purchases one, two, or three mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. Suppose that Pat used to produce 100 cakes, but she has a sudden increase in demand, so that she begins to produce 200 cakes. Explain how her average total cost will change in the short run and in the long run.