6. Three managers of the Magic Potion Company are discussing a possible increase in production. Each suggests
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6. Three managers of the Magic Potion Company are discussing a possible increase in production.
Each suggests a way to make this decision.
Harry: We should examine whether our company’s productivity—gallons of potion per worker—would rise or fall.
Ron: We should examine whether our average cost—cost per worker—
would rise or fall.
Hermione: We should examine whether the extra revenue from selling the additional potion would be greater or smaller than the extra costs.
Who do you think is right? Why?
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