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Igrushka is a profit-maximizing firm producing wooden dolls, which it can produce and sell in its home country, Russia, and abroad in France. The average
Igrushka is a profit-maximizing firm producing wooden dolls, which it can produce and sell in its home country, Russia, and abroad in France. The average cost (AC) curve on the following graph represents Igrushka's cost of producing wooden dolls within one factory, whether in Russia or in France.
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COST (Dollars per wooden doll)
QUANTITY (Thousands of wooden dolls)
AC
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