You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule: Quantity Average Total Cost 600 players $300 601                               301 Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it. Should you accept the offer? Why or why not?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 5PA
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You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule:

Quantity Average Total Cost

600 players $300

601                               301

Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it. Should you accept the offer? Why or why not?

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