ch7_p1 - b. If the firm wanted to minimize the average...

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7_1. A firm has fixed production costs of $5,000 and a constant marginal cost of  production equal to $500 per unit produced. a. What is the firm’s total cost function?  Average cost?
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Unformatted text preview: b. If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain....
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This note was uploaded on 12/28/2009 for the course ECON 120 taught by Professor Walsh during the Fall '09 term at University of Illinois, Urbana Champaign.

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