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Q. Palm Products Company has collected data on its average variable costs of production for past 12 months. Costs have been adjusted for inflation by deflating with an appropriate cost index. AVC and associated output data are Presented below:
obs Q AVC obs Q AVC1 22 $208 7 45 $1722 31 202 8 45 1583 31 206 9 45 1734 25 214 10 62 1705 41 174 11 62 1526 41 203 12 70 175
Current (state) estimated average variable cost, total variable cost and short run marginal cost functions.
At Illustrate what level of output does AVC reach its minimum value? Illustrate what is minimum value of AVC at its minimum?
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