2. Suppose the total cost function of a firm that produces hotdogs is C= 150q - 4q° + 29' where q is the output level of the firm. i. Find the average cost function of the firm. Show your workings. ii. If the firm's marginal cost function is 150 – 8q + 6q°, at what output level, the average cost is minimized? Show your workings. iii. Show your answer of part ii) in a well-labeled diagram.

2. Suppose the total cost function of a firm that produces hotdogs is C= 150q - 4q° + 29' where q is the output level of the firm. i. Find the average cost function of the firm. Show your workings. ii. If the firm's marginal cost function is 150 – 8q + 6q°, at what output level, the average cost is minimized? Show your workings. iii. Show your answer of part ii) in a well-labeled diagram.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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