Question a firm has a fixed production cost of 5 000 and a, Ask an Expert

Economics

Question: A firm has a fixed production cost of 5, 000 and a constant marginal cost of production of 500 per unit produced.

a) What is the firms total cost function? Average cost?

b) If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93123151

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