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Average cost, Marginal cost, Average Variable Cost

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1. Given the following total cost function of C (q) = 400Q(squared) - 20Q + 7

Calculate Average cost, Marginal cost, Average Variable Cost and the output level at which Average Variable Cost is at a minimum.

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Solution Summary

The expert calculates the Average cost, Marginal cost, Average Variable Cost and the output level.

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total variable cost = 400q2 - 20q
then the Average Variable Cost = VC / q = 400q - 20
Marginal cost = ...

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