Economics question

[electronicsgeek 10+ year member]

Your roommate's long hours in Chem lab finally paid off--she discovered a secret formula that lets people do an hours worth of studying in 5 min. So far, she's sold 200 doses, and faces the following average-total-cost schedule:

Q | Average Total Cost

199 | $199

200 | 200

201 | 201

If a new customer offers to pay your roommate $300 for one dose, should she make one more? Explain.

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[electronicsgeek 10+ year member]

bump for help

 

[bimma85 5,000+ posts]

she'll be paying and extra $200 for the 200 she already sold+$200 for the 201st pill...so she would be paying $400 for the pill and selling it for $300. No she shouldnt make it //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif