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Find the marginal cost given the average cost function AC = (100/Q)+ 2 Deduce that a 1 unit increase in Q will always result in

Find the marginal cost given the average cost function

AC = (100/Q)+ 2

Deduce that a 1 unit increase in Q will always result in a 2 unit increase in TC, irrespective of the

current level of output.

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2 A firm is a monopolistic producer of two goods G1 and G2. The prices are related to quantities Q, and Q2 according to the demand equations P1 = 50- Q1 P2 = 95 - 302 artial Differentiation If the total cost function is TC = 01 + 30,02 + 03 show that the firm's profit function is It = 5001 - 201+9502 -40;-30,02 Hence find the values of Q, and Q2 which maximize it and deduce the corresponding prices

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