2 Assume Airport Zidlohovice estimated its cost function as follows: C(q) = 100,000,000+ 0.1-q. C(q) is...

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2 Assume Airport "Zidlohovice" estimated its cost function as follows: C(q) = 100,000,000+ 0.1-q². C(q) is the total cost in PLN; q is the amount of take-offs and landings. Your demand for the current year is 20,000 take-offs and landings. a) Compute the average fixed cost. b) Compute the marginal cost c) Compute the average total cost d) Does the airport operate under economies of scale at the level of q=20,000? Justify your answer. e) At what quantity does the airport have the lowest cost per movement? 2 Assume Airport "Zidlohovice" estimated its cost function as follows: C(q) = 100,000,000+ 0.1-q². C(q) is the total cost in PLN; q is the amount of take-offs and landings. Your demand for the current year is 20,000 take-offs and landings. a) Compute the average fixed cost. b) Compute the marginal cost c) Compute the average total cost d) Does the airport operate under economies of scale at the level of q=20,000? Justify your answer. e) At what quantity does the airport have the lowest cost per movement?

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a The average fixed cost is equal to the total fixed cost divided by the quantity of takeoffs and la... View the full answer