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Consider the following cost relationships for a single-product firm: C(q) = 50 + 0.5q for q ≤ 7 C(q) = 7q for q > 7
a. Derive average and marginal cost for all integer outputs (from 1 to 7) less than or equal to 7.
b. What are the average and marginal cost for all outputs above 7?
c. Is there a minimum efficient scale of economies implied by these cost relationships? If so, what is it?
When on leave, workers receive 55% of their normal paya. Illustrate what are the likely responses on the demand (employer) side of the market.
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Suppose that computers use two units of capital for each worker, so that KC = 2LC, while shoes use 0.5 units of capital for each worker, so that KS = 0.5LS. There are 100 workers and 100 units of capital in the economy. Solve for the amount of labour..
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