## Suppose that...

Suppose that at a production level of 120 recliners,a furniture manufacturer has an average cost of $185 per chair and a marginal cost of$150 per chair.Each chair produced is sold for \$225.

a.Estimate the average cost of producing 121 recliners,to the nearest penny.

b.At a production level of 120 recliners,is profit increasing or decreasing?Explain.