A firm has a fixed production cost of $5000 and a constant marginal cost of production of

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A firm has a fixed production cost of $5000 and a constant marginal cost of production of $500 per unit produced.
a) What is the firm’s total cost function? Average cost?
b) If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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