Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q2/100) and a marginal cost function of MC = 8 + (Q/50). Suppose the firm also has an avoidable fixed cost of $225. What is the efficient scale of production, and what is the minimum average cost?
A. Qe = 0; AC = $8
B. Qe = 106; AC = $10.95
C. Qe = 150; AC = $10.83
D. Qe = 22,500; AC = $9.25
B. Qe = 106; AC = $10.95
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