Question
Thompson Industries estimated its short-run costs using a U-shaped average variable cost function of the form AVC = 43.40 - 2.80Q + 0.20Q2 and the
Thompson Industries estimated its short-run costs using a U-shaped average variable cost function of the form AVC = 43.40 - 2.80Q + 0.20Q2 and the total fixed cost (TFC) at Thompson Industries is $1,000.
If Thompson Industries produces 20 units of output, what is estimated total cost (TC)?
If Thompson Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
