Problem 2: Average total cost, from “Principles of Economics” by N. Gregory Mankiw You are the chief financial officer for a firm that sells gaming consoles. Your firm has the following average-total-cost schedule: Quantity | Average total cost 600             $300 601             $301 Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperate to buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or why not?

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