Suppose a firm has a cost function given by c = 2q 2 . (a) Is this
Question:
Suppose a firm has a cost function given by c = 2q 2
.
(a) Is this a short-run or long-run cost function? Explain.
(b) Determine the fixed cost (cF
) and variable cost (cV
) functions.
(c) Determine the average fixed cost (AFC ), average variable cost (AVC )
and average cost (AC ) functions.
(d) Determine the marginal cost (MC ) function.
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Related Book For
Managerial Economics A Strategic Approach
ISBN: 285451
2nd Edition
Authors: Robert Waschik ,Tim Fisher ,David Prentice
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