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According to one account of the problems DuPont had in entering the paint business, "the du Ponts had assumed that large volume would bring profits through lowering unit costs." In fact, according to one company report, "The more paint and varnish we sold, the more money we lost." Draw an average cost curve graph showing the relationship between paint output and average cost as DuPont expected it to be. Draw another graph that would describe the result that the more paint the company sold, the more money it lost.

Microeconomics, Economics

  • Category:- Microeconomics
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