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2. Suppose your firm has a contract requiring delivery of 15,000 video cameras for a price of $300 each.When you produce 15,000 video cameras, your
2. Suppose your firm has a contract requiring delivery of 15,000 video cameras for a price of $300 each.When you produce 15,000 video cameras, your average total cost is $240.Considering that your objective is to maximize short-run profits, would it be an error to fill a special order for 200 more cameras at the same price of $300 each, if producing the extra cameras would increase your overall average total to $240.50?(That is, if you produce 15,200 video cameras, your average total cost is $240.50.)You must show your work and explain.
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