1 suppose the average variable cost equation for a
1) Suppose the average variable cost equation for a competitive firm is given by:AVC=10 - 2Q + 0.5Q2a)At what output is AVC at a minimum?
b) If the market price of the firm's output is $7 per unit, should the firm produce or shut down?
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1) Suppose the average variable cost equation for a competitive firm is given by: AVC=10 - 2Q + 0.5Q2 a)At what output is AVC at a minimum b) If the market price of the firm's output is $7 per unit, should the firm produce or shut down
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