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The cost of the raw ingredients is only about 5 cents a liter plus the cost of packaging which is another 5-10 cents. Coca-Cola and Pepsi probably spend more money marketing their product than producing it.

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16y ago

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What happens when marginal cost exceeds average total cost?

MC is the cost of producing one extra good, so if the cost of producing that one extra good is above the average, then the ATC increases.


How do you find marginal average cost?

Marginal cost comes from the costs of producing just one more of something.


The long run average total cost curve?

The long run average total cost curve is the lowest average total cost for producing each level of output. It depicts the per unit cost of producing a good or service in the long run when all inputs are variable.


Average cost of a 2 litter of soda in 2009?

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Total cost would be: (Average cost)*8 +10.


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In 1990, the cost of a bottle of soda would have varied depending on factors such as location and brand. On average, a bottle of soda may have cost around $1 at that time.


What happens if marginal cost is equal to average total cost?

When marginal cost is equal to average total cost, it means that the cost of producing one more unit is the same as the average cost of all units produced. This indicates that the firm is operating at its most efficient level of production.


How much does a can of soda cost in india in ruppies?

The cost varies from state to state. But generally, it costs an average of Rupees 12-15.


Why is profits maximised when average cost is equal to marginal cost?

Profits are maximized when average cost (AC) equals marginal cost (MC) because this condition indicates that the firm is producing at an optimal output level. When MC is less than AC, producing additional units decreases average cost, suggesting more output would increase profits. Conversely, if MC exceeds AC, producing more would raise average costs and decrease profits. Therefore, the equilibrium point where AC equals MC is where the firm achieves maximum profitability.


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How to find the average fixed cost in a business?

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