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The following are AC and TC functions for various firms
(i). AC = 140/Q + 20
(ii) AC - a/Q = k
(iii) TC - 10 =2Q + 0.1Q2
(iv) TC - k - βQ = cQ2
Where a, k, β and c are positive constants.
(a) Find the expression for the gradients of the AC functions
(b) For what values of Q will AC be decreasing?
(c) Which functions will give U-shaped AC curves?
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