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Hedge Fun is a landscaping firm that specializes in topiary. It contracts with the owners of 125 local homes and provides its
Long-run average cost equals long-run marginal cost whenever: a. long-run marginal cost is at its minimum b.no factor always
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Answer #1

1.

Ans: d. 56

Explanation: Let x be units of output.

Revenue = 1300 (x)

Cost = 28000 + 800x

Breakeven occurs at: Revenue = Cost

1300x = 28000 + 800x

x = 56

2.

Ans: d.

Explanation: With constant returns to scale, we have: AC = MC

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