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Find when ac is a minimum

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Consider a general cost function C(q), with Average Cost = C(q)/q. Prove using calculus that the quantity which minimizes the Average Cost function is also at the point where the Marginal Cost equals the Average Cost. Find when AC is a minimum

Suppose firm has a constant marginal product of labor - one additional worker adds four units of output given any initial quantity of workers. What do the average variable and marginal costs look like for this firm? Provide a graph of the MC and AVC.

Reference no: EM132346152

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