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A firm’s Total Cost as a function of output Quantity is described by TC(Q) = 2Q3-8Q2 + 12Q + 4.
Use (or review) your knowledge of cost curves, and use derivatives as necessary, to find the following:
A) What is the firm’s Fixed Cost? (exactly)
B) At what Quantity is Average Variable Cost = Marginal Cost? (exactly)
C) What is Average Total Cost at Q = 16? (exactly)
Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.
Using lists (bullets and numbers) in documents
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