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Calculate the output that minimizes the firm avc

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Reference no: EM132030539

Suppose that each firm in a perfectly competitive market has a cost of TC = 75 + 500Q - 5Q2 + 0.5Q3

a) Determine if this is a short-run or long-run cost function (motivate):

b) Calculate the output that minimizes the firm's AVC.

What is the firm's shutdown price?

Reference no: EM132030539

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