Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its…

Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its home country, Italy, and abroad in Spain. The average cost (AC) curve on the following graph represents Giocattolo’s cost of producing toy cars within one factory, whether in Italy or in Spain. COST (Dollars per toy car) O 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of toy cars) Suppose that at the current market price of toy cars, the demand for Giocattolo’s product is 10,000 toy cars per year in Italy and 20,000 toy cars per year in Spain. (Hint: Select each point on the previous graph to see its coordinates.) per toy car, produce 10,000 toy cars at Based on Giocattolo’s average cost curve, within one factory it can produce 20,000 toy cars at $ S per toy car, and produce the total of 30,000 toy cars at S p er toy car.