2. Consider a firm in a competitive market that has the cost function C(q) = 8 +2q°, where q is the output quantity that the firm produces.(A) Determine average costs, marginal costs, variable costs and fixed costs.(B) Calculate the minimum of the average cost function.= 20. Determine the firm's optimal output(C) Suppose the firm faces price pquantity and its profit at this quantity.(D) Suppose the firm faces price p = 4. Determine the firm's optimal outputquantity and its profit at this quantity.

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2. Consider a firm in a competitive market that has the cost function C(q) = 8 + 2q°, where q is the output quantity that the firm produces. %3D (A) Determine average costs, marginal costs, variable costs and fixed costs. (B) Calculate the minimum of the average cost function. (C) Suppose the firm faces price p = 20. Determine the firm's optimal output quantity and its profit at this quantity.

2. Consider a firm in a competitive market that has the cost function C(q) = 8 + 2q°, where q is the output quantity that the firm produces. %3D (A) Determine average costs, marginal costs, variable costs and fixed costs. (B) Calculate the minimum of the average cost function. (C) Suppose the firm faces price p = 20. Determine the firm's optimal output quantity and its profit at this quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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