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Das Spielzeug is a profit-maximizing firm producing puzzles, which it can produce and sell in its home country, Germany, and abroad in Russia. The average
Das Spielzeug is a profit-maximizing firm producing puzzles, which it can produce and sell in its home country, Germany, and abroad in Russia. The average cost (AC) curve on the following graph represents Das Spielzeug's cost of producing puzzles within one factory, whether in Germany or in Russia. Suppose that at the current market price of puzzles, the demand for Das Spielzeug's product is 10,000 puzzles per year in Germany and 20,000 puzzles per year in Russia. (Hint: Select each point on the previous graph to see its coordinates.) Based on Das Spielzeug's average cost curve, within one factory it can produce 20,000 puzzles at $ per puzzle, produce 10,000 puzzles at $ per puzzle, and produce the total of 30,000 puzzles at $ per puzzle
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