Question
Suppose the long-run total cost function for an industry is given by the cubic equation TC = a+bq+cq 2 +dq 3 . Show (using calculus)
Suppose the long-run total cost function for an industry is given by the cubic equation TC = a+bq+cq2+dq3. Show (using calculus) that this total cost function is consistent with a U-shaped average cost curve for at least some values of a, b, c and d
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
