Question: Suppose a firm has a cost function given by c = 2q 2 . (a) Is this a short-run or long-run cost function? Explain. (b)

Suppose a firm has a cost function given by c = 2q 2

.

(a) Is this a short-run or long-run cost function? Explain.

(b) Determine the fixed cost (cF

) and variable cost (cV

) functions.

(c) Determine the average fixed cost (AFC ), average variable cost (AVC )

and average cost (AC ) functions.

(d) Determine the marginal cost (MC ) function.

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