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The increase in output obtained by hiring an additional worker is known as However, he has observed that doubling the number of workers has less than doubled his output. Thus, the average cost of producing 11 sweaters is approximately $6.50 per sweater

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This means that despite the marginal cost for producing the 11th sweater being higher at $6.75,. Woodard has found it necessary to hire more workers If the average cost of producing 10 sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.75, the average cost of producing 10 sweaters will be

If we fabricate an additional product at a higher cost than the current average, it will bring the average cost up

Hence, the average cost of manufacturing 11 items will be more than $6.50. If marginal cost is greater than average cost, then average cost will increase In this case, average variable cost will equal $6.53 after the 10th sweater is produced. If the average cost of producing 9 sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.25, the average cost of producing 10 sweaters will

In conclusion, the average cost of producing 10 sweaters will be less than $6.50 because the marginal cost of the tenth sweater is higher than the average cost. As sales have increased, mr