A Firm has Cost Function C= 2000 +0.001q and wants to produce 1000000 units. Show that its Average Cost will be smaller than the average cost of two identical firms producing 500000 units each. What is this type pf monopoly called?

A Firm has Cost Function C= 2000 +0.001q and wants to produce 1000000 units. Show that its Average Cost will be smaller than the average cost of two identical firms producing 500000 units each. What is this type pf monopoly called?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter9: Competition And Monopolies

Section9.2: Monopoly, Oligopoly, Monopolistic Competition

Problem 2R

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8. A Firm has Cost Function C= 2000 + 0.001q and wants to produce 1000000 units. Show that its
Average Cost will be smaller than the average cost of two identical firms producing 500000 units
each. What is this type pf monopoly called?

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