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Average total cost of producing players

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You own a company that produces MP3 players. You are currently selling 100 MP3 players per week. Your average total cost of producing these players is $100. Tom Waits comes to your factory and says he needs an MP3 player and will pay you $95 for it. Thus you need to produce the 101st MP3 player if you make the sale. Your average total cost if you produce 101 MP3 players is $99.95. Will you sell Mr. Waits the MP3 player? Why or why not?

Reference no: EM131277666

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