You are given the following long-run cost function: TC = 160Q- 20Q2 + 1.2Q3 a. Calculate the
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TC = 160Q- 20Q2 + 1.2Q3
a. Calculate the long-run average cost and marginal cost Plot these costs on a graph.
b. Describe die nature of this function's scale economies. Over what range of output does economies of scale exist? Diseconomies of scale? Show this on the graph.
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a LRAC 160 20Q 12Q2 LRMC 160 40Q 36Q2 b Because of the particular functional ...View the full answer
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Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
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