A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2 Q Find the level of output that will maximize revenue and minimize total cost and the profit function and the level of output that maximize profits

A firm has the following demand and average total cost functions: Q = 30 − P ATC =7/Q− 6 +1/2 Q Find the level of output that will maximize revenue and minimize total cost and the profit function and the level of output that maximize profits

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 17SQ

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Question

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A firm has the following demand and average total cost functions:

Q = 30 − P
ATC =7/Q− 6 +1/2 Q

Find the level of output that will maximize revenue and minimize total cost and the profit function and the level of output that maximize profits

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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