Question: Suppose a firm s cost function is given by C ( q ) = 9 2 q + q 2 . Consider the following statements:
Suppose a firms cost function is given by Cqq q Consider the following
statements:
I The fixed cost is ;
II The marginal cost is equal to the average variable cost;
III The cost is minimized at q
Which of the statements above are true?
a All of them
b Only I
cI and II
dI and III
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