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You are given the following long run cost function:

TC=160Q-20Q2+1.2Q3 Go from Q=0 to Q=12

A. Compute the long run average cost and marginal cost. Plot these costs on a graph.

B. Discuss the nature of this functions scale of economies. Over what range of output does economies of scale exist? Diseconomies of scale? Show this on the graph.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937560

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