A firm faces the following demand and cost functions p 23


1 A firm faces the following demand and cost functions: P = 23 - 0.6q AVC = 3 + 0.4q AFC = 40q -1

(a) Calculate the output that minimizes Average Cost.

(b) Calculate the output that maximizes profits.

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Business Economics: A firm faces the following demand and cost functions p 23
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