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I need help understanding c) and d) of attached exercise. Thank you in advance! 2) Cost functions Consider the following total cost function for an
I need help understanding c) and d) of attached exercise. Thank you in advance!
2) Cost functions Consider the following total cost function for an individual firm: C (q) = 10 + q + if. The rm faces demand curve D(p) = 20 p. a- At what level of output is average cost at its lowest? b- Draw a graph showing rm average cost against quantity. 0- Suppose that there is an industry with two identical rms, with this cost function. What is the industry total cost curve? What is the industry marginal cost curve? d- Suppose these two rms together act in a perfectly competitive manner. What is the price level in the case where these rms act perfectly competitively? What are the prots of the rms given perfectly competitive pricingStep by Step Solution
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