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You are currently employed as a manager trainee for a relatively new firm. The current manager has used budget and production data to determine that
You are currently employed as a manager trainee for a relatively new firm. The current manager has used budget and production data to determine that the average cost of production has fallen each of the last four quarters. Given that input prices have remained stable over this period, the amount of labor has not changed, but the amount of machine time has increased from 20 hours a week to 40 hours a week, what could account for the fall in the average cost of production?
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