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Abe is a custom picture framer. His total fixed cost is $ 2 0 a day, and his average variable Few people know about Abe's
Abe is a custom picture framer. His total fixed cost is $ a day, and his average variable Few people know about Abe's Framery and he is maximizing his profit by selling picture frames a day for $ a frame. Abe thinks that if he spends $ a day on advertising, he can increase his market and sell picture frames a day for $ a frame. If Abe advertises will his average total cost increase or decrease at the quantity produced?
If Abe advertises and as a result he sells picture frames a day for $ a frame, his
A average total cost decreases at the quantity produced
B average total cost does not change at the quantity produced
C average total cost increases at the quantity produced
D average total cost decreases if total cost decreases, and increases if total cost increases
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