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Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q-/100) and a marginal cost function of MC = 8 + (Q/50).

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Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q-/100) and a marginal cost function of MC = 8 + (Q/50). Suppose the firm also has an avoidable fixed cost of $225. What is the efficient scale of production, and what is the minimum average cost? Answers: Qe = 0, AC = $8. Qe = 106, AC = $10.95 Qe = 150, AC = 10.83 Qe = 22,500, AC = $9.25

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