Problem
Suppose a firm has the choice of two methods of producing: one method entails a fixed cost of $10 and a marginal cost of $2; the other entails a fixed cost of $20 and a marginal cost of $1. Draw the total and average cost curves for both methods. At what levels of output will the firm use the low-fixed-cost technology? At what levels of output will it use the high-fixed-cost technology?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.