Suppose a perfect in competitive firmà ¢ s short run cost function is given by: TC= 1/3 Q3 + 3 Q2 + 10Q +40 if the market price of the commodity Is Birr 26 per unit. A. Determine the profit maximizing Level of output b, find AFC AC, AVC and MC of firm at optimum level a output. c, find maximum profit of the firm.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
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Suppose a perfect in competitive firmâ s short
run cost function is given by:
TC= 1/3 Q3 + 3 Q2 + 10Q +40
if the market price of the commodity Is Birr 26 per unit.
A. Determine the profit maximizing Level of output
b, find AFC AC, AVC and MC of firm
at optimum level a output.
c, find maximum profit of the firm.
Transcribed Image Text:Suppose a perfect in competitive firmâ s short run cost function is given by: TC= 1/3 Q3 + 3 Q2 + 10Q +40 if the market price of the commodity Is Birr 26 per unit. A. Determine the profit maximizing Level of output b, find AFC AC, AVC and MC of firm at optimum level a output. c, find maximum profit of the firm.
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