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When XYZ Corporation Produces 35 Units of Output Its Average

question 21

Essay

When XYZ Corporation produces 35 units of output its average variable cost is $5. The marginal cost of the 36th unit of output is $7. If the firm chooses to produce the 36th unit of output, what will happen to average variable cost? Explain.


Definitions:

Contradictory

In logical terms, referring to propositions that cannot both be true at the same time.

Proposition

A suggested plan or course of action.

O Proposition

In traditional logic, an O proposition is a type of categorical statement that asserts some S are not P, where S and P are the subject and predicate respectively.

Contrary

Opposite in nature, direction, or meaning; conflicting with each other.

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