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  3. 2 propose and sketch a demand function for a product...

Question: 2 propose and sketch a demand function for a product...

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2. Propose and sketch a demand function for a product that currently sells for $500 with quantity sold at 25. Write both regular and inverse demand functions. 3. Representative firm in an industry has total cost function TC(a) -1849+and marginal cost function MC-2q a) What is the fixed cost function for the firm? What is the variable cost function? b) Derive average total, average fixed and average variable cost functions. c) Find the minimum efficient scale (-output that corresponds to the minimum of ATC) of the representative firm in this industry. What is the value of average cost at this output level?
d) Sketch ATC and MC, indicate areas of economies and diseconomies of scale. Label all important points
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