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Assume that the manager of the firm operating in a perfectly competitive market has estimated the average variable cost function to be:

AVC = 4.0 – 0.0024Q + 0.000006Q2

Fixed costs are $500.

The marginal cost function is:

i) MC = 4.0 – 0.0048Q + 0.000018Q2

ii) MC = 4.0 – 0.0012Q + 0.000002Q2

iii) MC = 4.0Q – 0.0024Q2 + 0.000012Q3

iv) MC = 4.0 – 0.0048Q + 0.000012Q2

v) None of the above

Additional Requirements:

Min Pages: 1

Level of Detail: Show all work

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914034

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