A firm's long-run total cost curve is TC(Q)= 1000Q - 30Q² + Q³. Derive the expression for the corresponding long-run average cost curve and then sketch it. At what quantity is the minimum efficient scale? Note: MC(Q) = 1000-60Q +3Q² Q=10 Q=12 Q-15 Q=20

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
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A firm's long-run total cost curve is
TC(Q)= 1000Q - 30Q² + Q³.
Derive the expression for the
corresponding long-run average cost
curve and then sketch it. At what
quantity is the minimum efficient scale?
Note: MC(Q) = 1000-60Q +3Q²
Q=10
Q=12
Q=15
Q=20
Transcribed Image Text:A firm's long-run total cost curve is TC(Q)= 1000Q - 30Q² + Q³. Derive the expression for the corresponding long-run average cost curve and then sketch it. At what quantity is the minimum efficient scale? Note: MC(Q) = 1000-60Q +3Q² Q=10 Q=12 Q=15 Q=20
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