Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the marginal cost is ____ (iI) the average cost is ____

Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the marginal cost is (iI) the average cost is

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 11MC

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Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then:

(i) the marginal cost is ____

(iI) the average cost is ____

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