Answered step by step
Verified Expert Solution
Question
1 Approved Answer
lst attempt Savo runs a small, popular sushi restaurant in a large metropolitan area. The market for sushi in her town is very competitive and
lst attempt Savo runs a small, popular sushi restaurant in a large metropolitan area. The market for sushi in her town is very competitive and Sayo is essentially a price taker. She has estimated her total cost function to be c[y) = y3 3312 -l 75y + 150.There are, of course, a number of related functions that can be derived from her total cost function. Here is a list: .1 2 ,. Average CostlAC(y)): y _3y -;?5y+150 = 92 33; l 75 l 1:0. Slope of Average Cost: 2y 3 . 9'2 3_ 2 r' Average Variable Cost [AVC(y)}: W = y2 3g + 75. Slope of Average Variable Cost: 23; 3. Marginal Cost [MC(y)}: 3y2 y + 75. Slope of Marginal Cost: 6;! 6 Based on these functions, at what price will Sayo decide to shut down the restaurant in the short run? Give your answer to two decimals. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started