Technical Question1 Chapter 7 Week 4

Technical Question1 Chapter 7 Week 4 - being less than...

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Technical Question #1 Graph 1. Taking this graph into consideration you can see that the company is experiencing a loss but it is not great enough to constitute ceasing operations. Instead the company should continue operations as such because average variable cost is less than it’s marginal revenue. Graph 2. This graph indicates that the company is making profit due to the average cost
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Unformatted text preview: being less than revenue. Graph 3. The graph indicates again that the company is going through a period of loss and would most likely need to shut down in the short-run due to being unable to turn enough of a profit to cover variable cost....
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