Average variable cost

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1   4 points for each part) True/False, Explain: For each of the following statements about costs of production, indicate True or False and explain your answer. a.    Purchasing power (getting volume discounts from your supplier) is a potential source of economies of scale.b.    If marginal cost is greater than average total cost, then average total cost is decreasing.c.    If total cost is TC = 500 + 40q – 60q2 + q3, then average variable costis minimized at an output level of q = 30.

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