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Marginal cash flows a co-worker claims that looking at all

Question: Marginal Cash Flows. A co-worker claims that looking at all this marginal this and incremental that is just a bunch of nonsense and states: "Listen, if our average revenue doesn't exceed our average cost, then we will have a negative cash flow, and we will go broke!" How do you respond?

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Basic Statistics: Marginal cash flows a co-worker claims that looking at all

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