For an individual firm in a perfectly competitive market, let its cost function be c(y) = 8y² + 5y + 6.a) Determine the firm’s marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity y.b) What is the firm’s short-run shutdown condition?c) Find the firm’s short-run shutdown price pˆ. That is, if the market price falls below pˆ, the firm will shutdown. 1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y² + 5y + 6a) Determine the firm's marginal cost, average total cost, average fixed cost, and average variable cost in terms of themarket price, p. Answers should not be in terms of quantity, y.b) What is the firm's short-run shutdown condition?c) Find the firm's short-run shutdown price, p. That is, if the market price falls below p, the firm will shut down.

Cost function(TC) = 8y2+5y+6 In perfect competition , P= MC = MR=AR 1) MC = d(TC)/dy = 16y+5 (MC in…

Answered: 1. For an individual firm in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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For an individual firm in a perfectly competitive market, let its cost function be c(y) = 8y² + 5y + 6.

a) Determine the firm’s marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity y.

b) What is the firm’s short-run shutdown condition?

c) Find the firm’s short-run shutdown price pˆ. That is, if the market price falls below pˆ, the firm will shutdown.

1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y² + 5y + 6
a) Determine the firm's marginal cost, average total cost, average fixed cost, and average variable cost in terms of the
market price, p. Answers should not be in terms of quantity, y.
b) What is the firm's short-run shutdown condition?
c) Find the firm's short-run shutdown price, p. That is, if the market price falls below p, the firm will shut down.

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