Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q2/100) and a marginal cost function of MC = 8 + (Q/50) .What is the efficient scale of production,and what is the minimum average cost?
A) Qe = 0; AC = $0
B) Qe = 0; AC = $8
C) Qe = 8; AC = $8
D) Qe = 8; AC = $64.64
Correct Answer:
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