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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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