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The Average Cost of Drama DVDs. You have been hired to produce a DVD of a play put on by a high school drama club. It will take you about 50 hours to make the master, which will be stored on a hard drive on your computer. The opportunity cost of your time is $20 per hour.

The marginal cost of burning DVDs is constant at $2. Draw the average-cost curve for producing the DVD, with quantities up to 100 DVDs. (Related to Application 4 on page 508.)

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