The cost C(q) (in dollars) of producing a quantity q of a certain product is shown in the graph below.The average cost is given by .Find on the graph the quantity where a(q) is minimal.Now suppose that the fixed costs (i.e., the costs of setting up before production starts) are doubled.Sketch the new cost function on the same set of axes as the original one and let be the quantity where the new is minimal.Which of the following is true?
A)
B)
C)
D) Cannot be determined
Correct Answer:
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