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Q. Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs will be C1 (q) = 3600 + 65q + 36q2. If it installs expertise 2, It'll be C2 (q) = 900 + 900q + q2.
(a) What do you mean by the rm's long-run average cost curve?(b) What do you mean by the rm's minimum client scale of production?(c) Illustrate expertise would the rm prefer (purely from a cost standpoint) if it expected to sell 30 units in summer as well as 10 units in winter each year?(d) What if it were more optimistic regarding summer sales? Explain.
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