Question
Given below are short run cost functions of a manufacturer of item X: 2 TC = 4000 + 1.3Q^2 + 20Q Price per unit under
Given below are short run cost functions of a manufacturer of item X: 2 TC = 4000 + 1.3Q^2 + 20Q
Price per unit under current market conditions is Rs. 200
Find the following:
i. The total VC function & AVC function
ii. Should the firm shut down or keep operating at Q = 100 and 150 units?
iii. How much 'operating profit per unit' will the firm get at Q = 200 units?
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
