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Suppose a Firm's Total Cost Curve Is TC = Q2

question 175

Essay

Suppose a firm's total cost curve is TC = Q2 + Q + 100.
a. Find the firm's marginal cost, average total cost, and average variable cost.
b. Use calculus to find the output level that minimizes average total cost.
c. Show that ATC = MC at this output level.
d. Show that this is the minimum ATC by examining the second derivative.


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