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Multiproduct firm - PowerPoint PPT Presentation

Chapter 16

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Some Additional Cost Concepts

Some Additional Cost Concepts. The author suggests that a good function to represent total cost has the general form TC = f + aQ + bQ^2 + cQ^3, Where the key ^ means raise to power, f represents fixed cost, Q represents the level of output that can vary, and

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Multiproduct firm - PowerPoint PPT Presentation

Chapter 16

Some Additional Cost Concepts