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Suppose a firm has a production functionQ= KL. The wage rate is 8 (w= 8) and the rental rate of capital is 5 (r= 5).

Suppose a firm has a production functionQ= KL. The wage rate is 8 (w= 8) and the rental rate of capital is 5 (r= 5). Capital is fixed at 4 units in the short-run (K= 4).

(a) What is the Total Cost function for the firm (as a function of Q)?

(b) What is the equation for the Average Variable Cost, Average Fixed Cost, and Average Total Cost for the firm (all as a function of Q)?

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