A car manufacturer has the following total cost function: TC=200+50 Q + 2Q a) Is this...

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A car manufacturer has the following total cost function: TC=200+50 Q + 2Q a) Is this a short run or long run cost function? Why? b) Compute the average total cost of producing cars, AC, and show that it is U-shaped. c) If the marginal cost function is MC = 50+ 4Q, determine the minimum point of the AC curve. A car manufacturer has the following total cost function: TC=200+50 Q + 2Q a) Is this a short run or long run cost function? Why? b) Compute the average total cost of producing cars, AC, and show that it is U-shaped. c) If the marginal cost function is MC = 50+ 4Q, determine the minimum point of the AC curve.

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Answer Lets break down each part of the problem step by step a Short Run or Long Run Cost Function T... View the full answer