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Les pains Chauds has a cost function: Cpc (q) = 9q + 2 The company Au bon caf has a cost function: Cbc (q) =
Les pains Chauds has a cost function: Cpc (q) = 9q + 2
The company Au bon caf has a cost function: Cbc (q) = 3q2+q
Issue 1:
What is the marginal cost of each of these two firms? You must show your calculations.
Issue 2:
Explain the consequences of this difference.
Issue 3:
What is the average cost of each of these two companies? You must show your calculations.
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