Curt grows beautiful orchids. His total fixed cost is $22 a day, and his average variable cost is $2 a plant. ew people know about Curt's Orchids and he is maximizing his profit by selling 11 orchids a day for $4 a plant. Curt thinks that if he spends $10 a day on advertising, he can increase his market and sell 29 orchids a day for $4 a p Curt advertises will his average total cost increase or decrease at the quantity produced? Curt advertises and as a result he sells 29 orchids a day for $4 a plant, his

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Curt grows beautiful orchids. His total fixed cost is $22 a day, and his average variable cost is $2 a plant.
Few people know about Curt's Orchids and he is maximizing his profit by selling 11 orchids a day for $4 a plant.
Curt thinks that if he spends $10 a day on advertising, he can increase his market and sell 29 orchids a day for $4 a plant.
If Curt advertises will his average total cost increase or decrease at the quantity produced?
If Curt advertises and as a result he sells 29 orchids a day for $4 a plant, his
O A. average total cost decreases at the quantity produced
B. average total cost decreases if total cost decreases, and increases if total cost increases
C. average total cost increases at the quantity produced
D. average total cost does not change at the quantity produced
Transcribed Image Text:Curt grows beautiful orchids. His total fixed cost is $22 a day, and his average variable cost is $2 a plant. Few people know about Curt's Orchids and he is maximizing his profit by selling 11 orchids a day for $4 a plant. Curt thinks that if he spends $10 a day on advertising, he can increase his market and sell 29 orchids a day for $4 a plant. If Curt advertises will his average total cost increase or decrease at the quantity produced? If Curt advertises and as a result he sells 29 orchids a day for $4 a plant, his O A. average total cost decreases at the quantity produced B. average total cost decreases if total cost decreases, and increases if total cost increases C. average total cost increases at the quantity produced D. average total cost does not change at the quantity produced
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