Question

Consider the market for running shoes. draw a​ firm's average total cost curve with no advertising. label it atc0. draw the​ firm's average total cost curve with advertising. label it atc1. if the firm successfully​ advertises, the quantity produced increases such that​ _______.

a. total cost increases and average total cost increases

b. total cost increases and average total cost decreases

c. total fixed cost decreases

d. total cost decreases and average total cost increases

Answer 1

I believe it’s b..... hope this helps pls tell me if I’m wrong! <3