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 C(q)=92q + q2. Consider the following
statements:
(I) The fixed cost is 9;
(II) The marginal cost is equal to the average variable cost;
(III) The cost is minimized at q=1.
Which of the statements above are true?
(a) All of them
(b) Only (I)
(c)(I) and (II)
(d)(I) and (III)

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