Question
Alpha Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently, Atlas produces 40,000 valves and is thinking about increasing
Alpha Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently, Atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behaviour of total manufacturing costs and unit manufacturing costs given this change?
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