Question
You are considering entering the market for breeding weasels. There are only three methods available for breeding weasels. Each breeding method incurs a different level
You are considering entering the market for breeding weasels. There are only three methods available for breeding weasels. Each breeding method incurs a different level of fixed costs (e.g., habitat, size of enclosure) and variable costs (e.g., food) associated with it, as indicated in the table below. You have no reason to doubt, question or refute this information.
METHOD TOTAL COST
A TC(q) =100+2q squared
B TC(q) = 200+q squared
C TC(q) = 400 + 1/2q squared
Determine the Long Run Average Cost (LRAC) function, according to the quantity of weasels bred.
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