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Cost Function

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1. For the following cost function, find AC
TC = 20,000 + 10 Q

2. For the following cost function, find AVC
TC = 20,000 + 10 Q

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Solution Summary

This solution is comprised of a detailed explanation and calculation to find AC and AVC for the given cost function.

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1. For the following cost function, find AC
TC = 20,000 + 10 Q
The AC will be reduced as the total output increased. The more the product is produced, the lower the AC will be.

2. For the following cost function, find AVC
TC = 20,000 + 10 Q
The AVC for this cost function is equal ...

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