Suppose all firms in an industry have the following long-run total cost curve

1. Suppose all firms in an industry have the following long-run total cost curve: . Derive the average cost curve and marginal cost curve of a firm. Sketch both curves in a figure. 
2. Find TVC, MC, AVC when

          .

1. Your firm produces two products, Q1 and Q2. An economic consulting firm has estimated your cost function to be

a. Are there economies of scope? (3 points)
b. Are there cost complementarities? (3 points)

c. Your market for Q1 is not very good, and an overseas firm has offered to buy the division of your company that produces Q1. What will happen to your marginal cost of producing Q2 if you sell the division? (3 points)