Suppose a firm has the following total cost function: TC = 300 + 40 Q 8Q2

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Suppose a firm has the following total cost function:

TC = 300 + 40 Q – 8Q2 + (2/3) Q3

(a) Write an equation for (i) average fixed cost; and (ii) average variable cost

(b) What will be the value of average (total) cost when Q = 60?

(d) For this firm what will be the value of average variable cost at its minimum

Related Book For answer-question

Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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Posted Date: Mar 06, 2024 11:30 PM

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Suppose a firm has the following total cost function: TC = 300 + 40 Q 8Q2

Question:

Expert Answer:

SOLUTION a i Average fixed cost AFC AF 300 Q ii Average variable cost AVC AVC 40Q 8Q2 23 Q3 b Wh... View the full answer

Microeconomics

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