Question
Consider a competitive firm in an industry. The short-run cost function = 300 + 30 + ^2 , and the market price is 60 .
Consider a competitive firm in an industry. The short-run cost function = 300 + 30 + ^2 , and the market price is 60 .
(1) Determine the average variable cost () and the average cost ()
(2) What is the profit-maximizing output level for the firm?
(3) What is the profit of the firm if it produces the profit-maximizing output?
(4) Will the firm operate, or will it shut down in the short run?
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International Economics
Authors: Dennis Appleyard, Alfred Field
8th Edition
978-0078021671, 0078021677
