Only typed answer What is the price is equal to the minimum average cost of ? Assume a competitive firm faces a market price of $60, a cost curve of:C = 0.003q³ + 25q + 750,The firm's profit maximizing output level (to the nearest tenth) is 62.36 units, and the profit (to the nearest penny) at this output level is $ 705.09.In this case,firms will enter. This will cause the market supply to shift right. This will continue until the price is equal to the minimum average cost of $50.00(round your answer to the nearest penny). At this price level the profit will be zero

C= 0·003 q³ + 25q +750 AC = c/q = 0·003 q² +25+750/q dAC/dq = 0.006q - 750q2. =0 0.0069 = 750/q²…

Answered: s 62.36 units, and the profit (to the…

s 62.36 units, and the profit (to the nearest penny) at this output le y to shift right. This will continue until the price is equal to the mini e profit will be zero

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?

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What is the price is equal to the minimum average cost of ?

Assume a competitive firm faces a market price of $60, a cost curve of:
C = 0.003q³ + 25q + 750,
The firm's profit maximizing output level (to the nearest tenth) is 62.36 units, and the profit (to the nearest penny) at this output level is $ 705.09.
In this case,
firms will enter. This will cause the market supply to shift right. This will continue until the price is equal to the minimum average cost of $50.00
(round your answer to the nearest penny). At this price level the profit will be zero

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