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You are the financial manager of a firm that sells digital music players. Your firm has the following average total cost schedule: Quantity of Digital
You are the financial manager of a firm that sells digital music players. Your firm has the following average total cost schedule:
Quantity of Digital Music Players | Average Total Cost |
800 players | $ 520 |
801 Players | $ 521 |
Your current level of production is 800 players, and all have been sold. Today, you get a call from a customer who wants to buy a music player. He offers you $1,200 for the device.
Should you accept the offer? Why or Why Not?
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