Question: QUESTION 1 Suppose that the total cost function of a firm is TC = 1000 + 10Q2 a) Find the output level that minimizes average

QUESTION 1

Suppose that the total cost function of a firm is TC = 1000 + 10Q2

a) Find the output level that minimizes average total cost (ATC) (4 marks)

b) Verify that at this output , ATC will be minimum (4 marks)

c) At the minimum output, what is the value of total cost (3 marks)

d) Find the marginal cost (MC) function (3 marks)

(Total 15 marks)

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