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Solve clearly In questions #1-3, assume that a firm has the following costs (q = output): Total Costs TC - 200 ifq =0 Total Costs
Solve clearly
In questions #1-3, assume that a firm has the following costs (q = output): Total Costs TC - 200 ifq =0 Total Costs TC - 500 + 5q + 2q if q30 Marginal Cost MC -5+4q ifq>0 1. What would be the value of this firm's sunk cost? a. $200 b. $500 c. $300 d. none of the above 2. What would be the value of this firm's total fixed cost? a. 5200 b. $500 c. $300 d. none of the above 3. What would be the value of this firm's average variable cost if the firm is producing 10 units? a. $250 b. $75 c. 525 d. none of the above 4. Which of the following is a true statement about the relationship between marginal produce and marginal cost a. the marginal cost and marginal product typically increase at the same time b, the marginal cost and marginal product typically decrease at the same time c. the marginal cost is thought to be decreasing when the marginal product is increasing d. the marginal cost is thought to be increasing when the marginal product is decreasing c. both a and b are correct f. both e and d are correctStep by Step Solution
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