Solved: If bianca advertises will her average total cost increase, Microeconomics

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If bianca advertises will her average total cost increase

Question: Bianca bakes delicious cookies. Her total fixed cost is $40 a day, and her average variable cost is $1 a bag. Few people know about Bianca's Cookies, and she is maximizing her profit by selling 10 bags a day for $5 a bag. Bianca thinks that if she spends $50 a day on advertising, she can increase her market share and sell 25 bags a day for $5 a bag.

If Bianca advertises, will her average total cost increase or decrease at the quantity produced?

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Microeconomics: If bianca advertises will her average total cost increase

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