A manufacturing firm produces and sells 3,000 units of a product X, where its AC = MC

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A manufacturing firm produces and sells 3,000 units of a product X, where its AC = MC and makes only normal profit. The firm get an additional order of 500 units at the ruling price. Should the THEORY OF COST AND BREAK-EVEN ANALYSIS 297 firm, a profit maximizing one, accept or reject the order. Justify your answer by using imaginary cost curves.

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