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It is known that the cost function of a multinational company is:C = 10 + 4Q - 8Q2 + 8Q3
Question:
Question a. What are the fixed costs of the company?
Question b. Show the Marginal Cost function!
Question c. Show the Average Variable Cost function!
Question d. Determine the level of production when the average variable cost (AVC) is minimum! (weight 10)
Question e. Prove that when AVC is minimum, the value of AVC = MC!
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