Question
A firm's short-run cost function for the production of gizmos is given by the following expression: C(y) = 10y2 + 200y + 100 000 a.
A firm's short-run cost function for the production of gizmos is given by the following expression:
C(y) = 10y2 + 200y + 100 000
a. Calculate the range of output over which it would be profitable for this firm to produce gizmos if it can sell each gizmo for $2400. Calculate the value of the output that maximizes this profit.
b. Repeat these calculations and explain your results for the case in which the short-run cost function is given by
C(y) = 10y2 + 200y + 200 000
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Plenitude The New Economics Of True Wealth
Authors: Juliet Schor
1st Edition
1594202540, 9781594202544
