Question: (3 points) Consider the cost function TC(q) = F + cq, q 2 0. Here, F > 0 and c > 0. (a) Sketch TC

(3 points) Consider the cost function TC(q) = F + cq, q 2 0. Here, F > 0 and c > 0. (a) Sketch TC (q). Then, find and sketch ATC (q), and MC (q) as a function of q. (1 point) (b) Is there a level of output that minimizes the average cost? Explain. (1 point) (c) Assuming that there is only one input, infer whether the production function corresponding to the cost function exhibits IRS, CRS, or DRS. Explain. (1 point)

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