Business
Business, 29.04.2021 18:30, pearl264

2. Suppose your firm has a contract requiring delivery of 15,000 video cameras for a price of $300 each. When you produce 15,000 video cameras, your average total cost is $240. Considering that your objective is to maximize short-run profits, would it be an error to fill a special order for 200 more cameras at the same price of $300 each, if producing the extra cameras would increase your overall average total to $240.50? (That is, if you produce 15,200 video cameras, your average total cost is $240.50.) You must show your work and explain.

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2. Suppose your firm has a contract requiring delivery of 15,000 video cameras for a price of $300 e...

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