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7. Consider a firm that has a total cost function that increases linearly with output and consequently the firm experien
Posted: Thu May 19, 2022 7:32 am
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7. Consider a firm that has a total cost function that increases linearly with output and consequently the firm experiences constant marginal cost. Assuming that total cost is denoted TC and that a, b are constants, which of the following could be the firm's total cost function? (3 marks) (a) TC = a +bQ+bQ3 (b) TC = a +bQ - Q2 (c) TC = a +bQ (d) TC = a - bQ