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Compute the Cost. Edward the entrepreneur takes 2 hours to cut a lawn and he cuts 500 lawns per year. He uses solar-powered e

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Answer #1

a) Marginal cost = 10*2 = 20

Average cost = 20+(20000*0.10/500) = 20+4 =24

b) His new marginal cost will not change

Average cost = 20+(20000*0.10/250) = 20+8 = 28

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