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A factory producing cables for personal computers finds that its current average cost of production is $11

Accounting

A factory producing cables for personal computers finds that its current average cost of production is $11.97 and its marginal cost of production is $18.54, at the current output of 1,041 cables per month. The output is increased to 1,288 cables per month. At this new output,

a. average cost will be higher than at the old output.

b. average cost will be lower than at the old output.

c. average cost could be either higher or lower than it was at the old output.

d. average cost will increase so that it exceeds marginal cost.

Option 1

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