3. A firm's short-run total cost function is TC = 4q²-2q+7 he firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that mininizes average cost, AC. Show you have a minimums (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.

3. A firm's short-run total cost function is TC = 4q²-2q+7 he firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that mininizes average cost, AC. Show you have a minimums (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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