Production average total cost of producing ice cream

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Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing ice cream is $3.30, average variable cost is $2.50, and price is $3.40. Over time, everything else held constant, profits in this market will decrease/increase/ remain unchanged

Reference no: EM131169377

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