Draw the total and average cost curves for both methods

Reference no: EM131142410

Suppose a firm has the choice of two methods of producing: one method entails a fixed cost of $10 and a marginal cost of $2; the other entails a fixed cost of $20 and a marginal cost of $1. Draw the total and average cost curves for both methods. At what levels of output will the firm use the low-fixed-cost technology? At what levels of output will it use the high-fixed-cost technology?

Reference no: EM131142410

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