A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a sunk fixed cost of $108 per week. Its marginal cost is MC = 6Q². a. What is the firm's supply function when the $108 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q=(P/6) 0.5 for Pz $ b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. Q=(P/6) 0.5 for Pz $ 216

A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a sunk fixed cost of $108 per week. Its marginal cost is MC = 6Q². a. What is the firm's supply function when the $108 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q=(P/6) 0.5 for Pz $ b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. Q=(P/6) 0.5 for Pz $ 216

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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