A competitive firm has following SHORT RUN cost function: C = 4 + 2q3- 4q2 + 20q Answer: (a) Obtain in a table average total cost (ATC), average variable (AVC) and marginal costs (MC). Plot on a graph b) In what price interval will firm offer zero output? Identify on your graph c) Identify the supply curve in graph d) At what price will firm offer exactly 8 units?
A competitive firm has following SHORT RUN cost function: C = 4 + 2q3- 4q2 + 20q Answer: (a) Obtain in a table average total cost (ATC), average variable (AVC) and marginal costs (MC). Plot on a graph b) In what price interval will firm offer zero output? Identify on your graph c) Identify the supply curve in graph d) At what price will firm offer exactly 8 units?
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.9P
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A competitive firm has following SHORT RUN cost function: C = 4 + 2q3- 4q2 + 20q
Answer:
(a) Obtain in a table
b) In what price interval will firm offer zero output? Identify on your graph
c) Identify the supply curve in graph
d) At what price will firm offer exactly 8 units?
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