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You produce shoes. Currently you produce 4 pairs of shoes at a total cost of %40.
a)what is your average total cost (ATC)
b)Suppose you could produce one more fifth pair at a marginal cost of $20. If you do produce that fifth pair of shoe, what will your average total cost be? Has your average total cost increased or decrease d? why?
c)suppose instead that you could produce one more a pair at a marginal cost of $20. If you do produce that fifth pair of shoe, what will your average total cost be? Has your average total cost increases or decreases? Why?
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