This news analysis is based on a scenario in which the firm is operating on the

This news analysis is based on a scenario in which the firm is operating on the declining portion of its average total cost (ATC) curve.
This news analysis is based on a scenario in which the firm is operating on the declining portion of its average total cost (ATC) curve. What would happen to profits if ATC was constant or increasing when demand increases? Would this indicate that the firm should expand its facilities?
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