4. Explain how each of the following events will affect the average and marginal cost curves of a firm : a) a decrease in labour rate; b) an increase in rent for a facility; c) stricter environmental regulation requiring installation of scrubbers on smokestacks; d) a decrease ...
5. Call Us demand function is Q = 20 0.2P and the MC = 10 + 5Q. Given that TFC = $2,000; a) Derive an equation for the TC. b) Calculate the profit at the profit maximizing level.