Assume that the marginal cost curve is given by MC(qi) = 6 + 4qi. And the average variable cost is AVC(qi) = 6 +8qi+ 2qi. (a) Find the shutdown price. (b) If the current market price is $12. What is the optimal quantity produced? (c) What is the optimal quantity produced? If the current market price is $15. What is the optimal quantity produced?
Assume that the marginal cost curve is given by MC(qi) = 6 + 4qi. And the average variable cost is AVC(qi) = 6 +8qi+ 2qi. (a) Find the shutdown price. (b) If the current market price is $12. What is the optimal quantity produced? (c) What is the optimal quantity produced? If the current market price is $15. What is the optimal quantity produced?
Chapter24: Perfect Competition
Section: Chapter Questions
Problem 3E
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Assume that the marginal cost curve is given by MC(qi) = 6 + 4qi. And the
(a) Find the shutdown price.
(b) If the current market price is $12. What is the optimal quantity produced?
(c) What is the optimal quantity produced? If the current market price is $15. What is the optimal quantity produced?
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