Assume that the manager of the firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 – 0.0024Q + 0.000006Q2
Fixed costs are $500.
The marginal cost function is:
i) MC = 4.0 – 0.0048Q + 0.000018Q2
ii) MC = 4.0 – 0.0012Q + 0.000002Q2
iii) MC = 4.0Q – 0.0024Q2 + 0.000012Q3
iv) MC = 4.0 – 0.0048Q + 0.000012Q2
v) None of the above
Additional Requirements:
Min Pages: 1
Level of Detail: Show all work