Question
The long-run cost function of a farming business is c (y, F) = (1 + y 2 )/F where y is the output and F
The long-run cost function of a farming business is c (y, F) = (1 + y2)/F
where y is the output and F is fertility (fertility is given). If the company produces zero output, its cost is zero.
a) Calculate the average cost.
b) Find the output level that minimizes the average cost.
c) What is the price below which the company prefers not to produce anything?
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OPEC Twenty Years And Beyond
Authors: Ragaei El Mallakh
1st Edition
1317244737, 9781317244738
