Question
A car manufacturer has the following total cost function: TC=200+50 Q + 2Q a) Is this a short run or long run cost function?
A car manufacturer has the following total cost function: TC=200+50 Q + 2Q a) Is this a short run or long run cost function? Why? b) Compute the average total cost of producing cars, AC, and show that it is U-shaped. c) If the marginal cost function is MC = 50+ 4Q, determine the minimum point of the AC curve.
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Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
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