Suppose
SusanSusan
is currently producing
50 comma 00050,000
hotdogshotdogs
per month at a total cost of
$5 comma 000.005,000.00.
What is
herher
average total cost of production?
$enter your response here.
(Enter a numeric response using a real number rounded to two decimal places.)
Part 2
Now suppose
SusanSusan
increases production to
50 comma 00150,001
hotdogshotdogs,
and the total cost of production increases to
$5 comma 000.165,000.16.
What is
herher
marginal cost of producing the
50 comma 00150,001 Superscript th
hotdoghotdog?
$enter your response here.
Part 3
Since the marginal cost of production is
greatergreater
than the average total cost of production, the average total cost of production must be
▼
falling
rising
.