Now we have that AVC achieves it's minimum when q = 3. Find the minimum value that the AVC reaches by plugging in q=3 to AVC (q) = q² – 6q + 20. You can verify that this value is right in a couple of ways: (1) check your desmos plot to make sure that the y-coordinate at the minimum matches AVC(3). The other is to compute MC(3), which should be the same as AVC(3). %3! Set p-AVC(3), the value you just found. This should be your shit-down price. That is, the firm shuts down if p 0 O The firm will shut down if p < 600 The firm will shut down regardless of price

Now we have that AVC achieves it's minimum when q = 3. Find the minimum value that the AVC reaches by plugging in q=3 to AVC (q) = q² – 6q + 20. You can verify that this value is right in a couple of ways: (1) check your desmos plot to make sure that the y-coordinate at the minimum matches AVC(3). The other is to compute MC(3), which should be the same as AVC(3). %3! Set p-AVC(3), the value you just found. This should be your shit-down price. That is, the firm shuts down if p 0 O The firm will shut down if p < 600 The firm will shut down regardless of price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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