Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

image

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer Lets break down each part of the problem step by step a Short Run or Long Run Cost Function T... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: David Laibson, John List

Global Edition 1st Edition

1292079576, 978-1292079578

More Books

Students also viewed these Economics questions