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The cost function of a firm is TC = 2q - 2q +8 and the marginal cost is MC = 4q-2. Remember that q
The cost function of a firm is TC = 2q - 2q +8 and the marginal cost is MC = 4q-2. Remember that q stands for quantity produced. a) Find the Average Variable Cost and the Average Fixed Cost b) Find the efficient scale of production for the firm c) Find the Average Total Cost at the efficient scale (Hint: what is the value of the average total cost when the firm produces at its efficient scale?)
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
