1. Micky's auto mechanic shop has a daily total cost represented by: C 98+2q+2q2. Shop's marginal...

   

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1. Micky's auto mechanic shop has a daily total cost represented by: C 98+2q+2q2. Shop's marginal cost is given by: MC 2+ 4q, where q is the number of repaired cars. = a. Derive an expression for average cost. b. Find the quantity range where the shop experiences the economies scale (Hint: scale economy == AC index is given by: S =). MC c. At what production level are scale economies exhausted?? 1. Micky's auto mechanic shop has a daily total cost represented by: C 98+2q+2q2. Shop's marginal cost is given by: MC 2+ 4q, where q is the number of repaired cars. = a. Derive an expression for average cost. b. Find the quantity range where the shop experiences the economies scale (Hint: scale economy == AC index is given by: S =). MC c. At what production level are scale economies exhausted??