Consider the following cost relationships for a single-product firm: C(q) = 50 + 0.5q for q ≤ 7 C(q) = 7q for q > 7
a. Derive average and marginal cost for all integer outputs (from 1 to 7) less than or equal to 7.
b. What are the average and marginal cost for all outputs above 7?
c. Is there a minimum efficient scale of economies implied by these cost relationships? If so, what is it?