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Situation to economies of scale

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Reference no: EM131116809

In fall 2013, Apple loaned its sapphire glass supplier $578 million to set up a manufacturing plant to produce the glass for the new iPhone 6. In November 2014, Apple's glass supplier lost the contract and promptly filed for bankruptcy. What happened to cause bankruptcy? How did the loss of the Apple contract affect fixed cost for the glass supplier? How might this have affected Average Total Cost (ATC)? Compare this situation to economies of scale?

Reference no: EM131116809

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