Suppose a firm has the following total cost function: TC = 300 + 40 Q 8Q2
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Question:
Suppose a firm has the following total cost function:
TC = 300 + 40 Q – 8Q2 + (2/3) Q3
(a) Write an equation for (i) average fixed cost; and (ii) average variable cost
(b) What will be the value of average (total) cost when Q = 60?
(c) What will be the marginal cost, when Q = 20?
(d) For this firm what will be the value of average variable cost at its minimum
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