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2 Suppose a firm faces a cost function of C = 8 + 4q+q so that its marginal cost is MC = 4 +
2 Suppose a firm faces a cost function of C = 8 + 4q+q so that its marginal cost is MC = 4 + 2q. a. What is the firm's fixed cost, F? b. What is the formula for the firm's variable cost (VC), Average Cost (AC), and Average Variable Cost (AVC)? c. On a diagram, draw the AC, AVC, and MC curves.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
