You are given a cost function of TC(Q)= 10,000+ 20 Q Assume Q = 500, initially. What higher Q would cause average cost to be reduced by 25%? a. 1,000 b. 2,000 c. 700 d. 600

Managerial Economics: A Problem Solving Approach
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Chapter7: Economies Of Scale And Scope
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You are given a cost function of TC(Q)= 10,000+ 20 Q Assume Q = 500, initially.
What higher Q would cause average cost to be reduced by 25%?
a. 1,000
c.
b. 2,000
d.
700
600
Transcribed Image Text:You are given a cost function of TC(Q)= 10,000+ 20 Q Assume Q = 500, initially. What higher Q would cause average cost to be reduced by 25%? a. 1,000 c. b. 2,000 d. 700 600
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