Question: A firm employs a production function Q F K
A firm employs a production function Q = F( K, L) for which only two values of K are possible, K1 and K2 . Its ATC curve when K = K1 is given by ATC1 = Q2 - 4Q + 6. The corresponding curve for K = K2 is ATC2 = Q2 - 8Q + 18. What is this firm’s LAC curve?
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