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Suppose That a Firm's Output Increases from 400 to 500

Question 94

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Suppose that a firm's output increases from 400 to 500 units and its total cost increases from $80,000 to $95,000,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 400 units is $200 an...

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