Pretty Designs, Inc. makes flower pots. Suppose that their average total cost of production is $60 when 5 flower pots are produced. Suppose the marginal cost of the sixth flower pot is $120. What is Pretty Designs' average total cost when six flower pots are produced?

Pretty Designs, Inc. makes flower pots. Suppose that their average total cost of production is $60 when 5 flower pots are produced. Suppose the marginal cost of the sixth flower pot is $120. What is Pretty Designs' average total cost when six flower pots are produced?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 2MC

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