Question: A firms long-run total cost function is C = 360 + 40Q + 10Q2. a. What is the shape of the long-run average cost curve?

A firm’s long-run total cost function is
C = 360 + 40Q + 10Q2.
a. What is the shape of the long-run average cost curve?
b. Find the output that minimizes average cost.
c. The firm faces the fixed market price of $140 per unit. At this price, can the firm survive in the long run? Explain.

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a Given the cost function C 360 40Q 10Q 2 it follows that AC 360Q 40 10Q Clearly ... View full answer

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