Average total cost can increase, decrease or have a U-shaped relation with the quantity of output produced. What does each of these scenarios imply about an organisation’s incentives to increase its...

Average total cost can increase, decrease or have a U-shaped relation with the quantity of output produced. What does each of these scenarios imply about an organisation’s incentives to increase its quantity of output? What do you think are the implications from the findings on the costs of commerce and medicine courses for the likelihood of a university offering each course, and for the numbers of students it would seek to enrol in each course? Does this match what you know about the availability of commerce and medicine courses?