Question: 7. Suppose a firm has the long-run total cost function TC q-40q+600q (a) Calculate the average cost function for this firm [1 mark] (b)

7. Suppose a firm has the long-run total cost function TC q-40q+600q

7. Suppose a firm has the long-run total cost function TC q-40q+600q (a) Calculate the average cost function for this firm [1 mark] (b) At what output does the average cost equal the minimum? What is the average cost at this level of output? [2 marks] (c) What is the marginal cost function for this firm? At what level of output will it cross the average cost curve? [2 marks]

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