1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y2 + 5y + 6 a) Determine the firm's marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity,p b) What is the firm's short-run shutdown condition? c) Find the firm's short-run shutdown price, p. That is, if the market price falls below p, the firm will shut down.
1. For an individual firm in a perfectly competitive market, the cost function is c(y) = 8y2 + 5y + 6 a) Determine the firm's marginal cost, average total cost, average fixed cost, and average variable cost in terms of the market price, p. Answers should not be in terms of quantity,p b) What is the firm's short-run shutdown condition? c) Find the firm's short-run shutdown price, p. That is, if the market price falls below p, the firm will shut down.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 4CQQ
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For an individual firm in a
a) Determine the firm's marginal
b) What is the firm's short-run shutdown condition?
c) Find the firm's short-run shutdown price, p*. That is, if the market price falls below p*, the firm will shut down.
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