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Business, 22.11.2019 20:31 2019jbash

American idle sells hammocks in a perfectly competitive market. this year, the price of hammocks has fallen to $24, and simon cowbell, the manager of american idle, is trying to decide what to do. he discovers that his average variable cost (avc) is $25, average total cost (atc) is $30, and marginal cost is $24 and upward sloping. what should he do? a. decrease production so that mc falls below $27. b. increase production until atc falls below $27. c. shut down because p avo.

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