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Suppose a company that operates in a competitive market and whose short-term (short-run) production costs are given by the function: C(q) = 92 + 109
Suppose a company that operates in a competitive market and whose short-term (short-run) production costs are given by the function:
C(q) = 92 + 109 + 5, where "q" is its level of production and "C (q)" the total cost.
Suppose, in addition, that the price of the product is p = 20:
a) Calculate the production and the equilibrium profit of the company, as well as its functions of average cost, fixed cost, and marginal cost;
b) Graphically indicate the supply curve of the company.
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