6. Suppose a competitive firm's production function is q(x) = axs –b, where a > 0 and b > 0. q is the number of final product per week. r is the number of input. The cost of one unit of x is c, where c> 0. a) What is the firm's output level and profit at price of po? b) Suppose b = 0. At what price does the firm reach the shut-down point in %3D the short run?
6. Suppose a competitive firm's production function is q(x) = axs –b, where a > 0 and b > 0. q is the number of final product per week. r is the number of input. The cost of one unit of x is c, where c> 0. a) What is the firm's output level and profit at price of po? b) Suppose b = 0. At what price does the firm reach the shut-down point in %3D the short run?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![6. Suppose a competitive firm's production function is q(x) = a.x3 –b, where
a > 0 and b > 0. q is the number of final product per week. x is the number of
input. The cost of one unit of x is c, where c> 0.
a) What is the firm's output level and profit at price of po?
b) Suppose b = 0. At what price does the firm reach the shut-down point in
the short run?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5c4342b-0802-4886-acc0-532b11c46fa6%2F23f8f1b3-b703-4d08-9e65-e5e255138bce%2Fz5evrf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Suppose a competitive firm's production function is q(x) = a.x3 –b, where
a > 0 and b > 0. q is the number of final product per week. x is the number of
input. The cost of one unit of x is c, where c> 0.
a) What is the firm's output level and profit at price of po?
b) Suppose b = 0. At what price does the firm reach the shut-down point in
the short run?
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