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Afirm's learningcurve, which shows the relationship between average cost and cumulative output(the sum of its output since the firm startedproducing), is AC=a+bN^r where AC is
Afirm's learningcurve, which shows the relationship between average cost and cumulative output(the sum of its output since the firm startedproducing), is
AC=a+bN^r
where AC is its averagecost; N is its cumulativeoutput; anda, b, and r are constants.
What is thefirm's AC if r=0?
If r=0, then
AC=______ . (enter formula)
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