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Calculate the profits for increase and decrease in quantity

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Reference no: EM13326953

For a given price P = $5, AVC = $3, and FC = $20,000, what is the DOL if the manufacturer is producing 15,000 units?

Using the values of DOL calculated above, calculate the profits for a 10% increase and 10% decrease in quantity.

Reference no: EM13326953

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