100 25 TC(g) = + g* (q) e i 100 25 ATC(g)=+ q 11g 11 50 Suppose that the firm's marginal costs were given by
100 25 TC(g) = + g* (q) e i 100 25 ATC(g)=+ q 11g 11 50 Suppose that the firm's marginal costs were given by M = Hq. Then, given your answers to Questions 11 and 12 above, at what quantity does the firm achieve maximum cost efficiency? (That is, at what point does it go from increasing to decreasing returns to scale?) O g=2 O g=16 O g=4 O Roughly =350
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