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What output is the average variable cost

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Reference no: EM13139520

Suppose the total cost equation for a competitive firm is given by:

TC=1,000 + 10Q - 2Q2 + 0.5Q3

(A) At what output is the average variable cost (AVC) at a minimum?

(B) If the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?

Reference no: EM13139520

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