2.2 A firm's short-run cost function is c() = 2009-692 +0.393 +400. Determine the fixed cost, F; the average variable cost, AVC; the average cost, AC; the marginal cost, MC; and the average fixed cost, AFC. (Hint: See Solved Problem 7.20.) M
2.2 A firm's short-run cost function is c() = 2009-692 +0.393 +400. Determine the fixed cost, F; the average variable cost, AVC; the average cost, AC; the marginal cost, MC; and the average fixed cost, AFC. (Hint: See Solved Problem 7.20.) M
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 11MC
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Step 1
The short run total cost function is the sum of fixed and variable cost functions.
CS(q) = F + V(q)
where F is the fixed cost
and V(q) is the variable cost (costs that changes with output produced).
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