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A manufacturer of baseball bats has a fixed cost of $2,000 for equipment and a constant marginal cost o $4 per bat. With this particular
- A manufacturer of baseball bats has a fixed cost of $2,000 for equipment and a constant marginal cost o $4 per bat. With this particular cost structure, we can conclude:
- that both the average variable cost and the average total cost curves will be u-shaped.
- that both the average variable cost and the average total cost curves will be horizontal lines
- that both the average variable cost and the average total cost curves will be vertical lines
- that the average variable cost curve will be a horizontal line while the average total cost curve will be downward sloping
- that the average variable cost curve will be downward sloping while the average total cost curve will be a horizontal line.
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