(iii) What part of the decreasing range is practically feasible? (iv) Write an equation for the total cost function. (v) Hence calculate the level of output for which total costs are minimum.
(iii) What part of the decreasing range is practically feasible? (iv) Write an equation for the total cost function. (v) Hence calculate the level of output for which total costs are minimum.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:(b) A firm has an average cost function
125, q?
4.
+-
16
A(q)
%3D
where q is the firm's output.
(i) Determine the level of output for average costs are minimum.
(ii) Hence determine the range of values for which average costs are decreasing.
(iii) What part of the decreasing range is practically feasible?
(iv) Write an equation for the total cost function.
(v) Hence calculate the level of output for which total costs are minimum.
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