Draw a graph like Figure 11-12 and insert a short-run average total cost curve corresponding to a

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Draw a graph like Figure 11-12 and insert a short-run average total cost curve corresponding to a long-run output choice of 5 cases of salsa per day. Use the graph to show why Selena’s Gourmet Salsas should change its fixed cost if it expects to produce only 4 cases per day for a long period of time.

Figure 11-12:

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Microeconomics

ISBN: 9781319245283

6th Edition

Authors: Paul Krugman Robin Wells

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