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A price-taking firm's variable cost function is VC=3Q^3 where Q is its output per week. It has a sunk fixed cost of $3,072 per week.
A price-taking firm's variable cost function is
VC=3Q^3
where Q is its output per week. It has a sunk fixed cost of $3,072 per week. Its marginal cost is
MC=9Q^2
a. What is the firm's supply function when the $3,072 fixed cost is sunk?
Q = (P/9)0.5 for P $(answer here)
b. What is the firm's supply function when the fixed cost is avoidable?
Q = (P/9)0.5 for P $(answer here)
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