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Derive formulas for average fixed cost, average variable cost, average total cost, and marginal cost for the following cost function: TC= 100 + 10Q
You are the CEO of a major producer of funnel cakes. Your cost accountant has provided you with a table describing your cost structure, but you have inadvertently dripped cooking grease on it and most of the table is illegible. Reconstruct the table below, given the remaining legible numbers:
True or false: Average variable cost reaches its minimum point at a lower level of output than average total costs. Explain your answer, using a graph of average and marginal costs to illustrate.
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