Suppose, at a given point in time, Stephanie’s Soda Fountain sells ice cream in a perfectly competitive market and is

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 marginal cost is $3.50. Over time, Stephanie’s output of ice cream will , everything else held constant.

Leave a Reply

Your email address will not be published. Required fields are marked *