Question: A firm has the following short-run total cost (STC) function: STC = $1,000 + 240Q 4Q 2 + (1/3)Q 3 Write equations for the

A firm has the following short-run total cost (STC) function:

STC = $1,000 + 240Q – 4Q2 + (1/3)Q3

  1. Write equations for the firm’s short-run marginal cost (SMC), average variable cost (AVC), and short-run average cost (SAC).

)

  1. Determine the output level at which SMC will be minimised.


  1. Determine the output level at which AVC will be minimised.


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