Question
A price-taking firm's variable cost function is VC=3Q^3 where Q is its outputper week. It has a sunk fixed cost of $3,000 per week.Its marginal
A price-taking firm's variable cost function is
VC=3Q^3
where Q is its outputper week. It has a sunk fixed cost of $3,000 per week.Its marginal cost is
MC=9Q^2
a. What is its profit-maximizing output when the price is P = $324?
-how many units
b. What is the profit maximizing output if the fixed cost is avoidable?
-how many units
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The Great Convergence Information Technology And The New Globalization
Authors: Richard Baldwin
1st Edition
067466048X, 9780674660489
