Assume the total monthly cost (TC) equation for a firm is TC = $1,500 + 4.5x (where x = units produced). Should the firm accept a 2,000-unit order from a customer at a price of $5 per unit if excess capacity exists and there are no other competing orders? Calculate.

Answer rating: 100% (QA)

The firm should decide based on a comparison of the cost of producing the additional units and the r... View the full answer