Question
A firm has the following short-run cost function: c(y) = (y - 3)^3 + 6. Demand for their product is given by the demand function
A firm has the following short-run cost function: c(y) = (y - 3)^3 + 6. Demand for their product is given by the demand function y(p) = 4 - p.
a. What is the firm's fixed cost?
b. What is the firm's profit-maximizing level of output in the short run?
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Intermediate Microeconomics and Its Application
Authors: Walter Nicholson, Christopher M. Snyder
12th edition
978-1133189022, 1133189024, 1133189032, 978-1305176386, 1305176383, 978-0357687000, 978-1133189039
