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4. Suppose that a rm's inputs are labor (variable costs) and trucks ( xed costs) and the rm owns one truck and the cost function,

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4. Suppose that a rm's inputs are labor (variable costs) and trucks ( xed costs) and the rm owns one truck and the cost function, in the short run, is C(q} : 5U+q+ as. (a) The marginal cost function is CTQ) : 1 + g. It is the derivative of the cost function. What are the average total cost and the average variable cost functions? Note: I'm asking you to give me functions of g. (b) Graph these three cost functions. (c) If the price is $15, how much output will the rm produce if it is maximiz- ing prots? Hint: assume the rm is a price-taker and its output decision does not effect the price. (d) Suppose that in the long run the rm can purchase more trucks and the cost function is the same for each truck. If it expects the price to stay at $15, will the rm buy more trucks? If it expects the price to drop to $9 and stay at $9, will the rm bu},r more trucks? Explain

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