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Suppose the total cost of producing 10,000 tennis balls is $30,000, and the fixed cost is $10,000. Suppose that the output of 10,000 was operating
Suppose the total cost of producing 10,000 tennis balls is $30,000, and the fixed cost is $10,000. Suppose that the output of 10,000 was operating at the efficient scale.Will the gap between the average variable cost and average fixed cost get smaller, bigger, or no change as the output increases?
Group of answer choices
a. None of these answers are correct.
b. It will get smaller.
c. There will be no change.
d. It will get bigger.
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