Question #3 Suppose a firm's short-run cost function is given by the following expression: C(q) = 10 + 14q – 6q² + q³ A) Assuming this firm's only variable input is labor, for what values of q does this firm experience increasing returns to labor? B) If this firm is going to produce a strictly positive level of output in the short-run (i.e. q > 0), what is the lowest level of q they would be willing to produce and what is the minimum price p they would need to see?

Question #3 Suppose a firm's short-run cost function is given by the following expression: C(q) = 10 + 14q – 6q² + q³ A) Assuming this firm's only variable input is labor, for what values of q does this firm experience increasing returns to labor? B) If this firm is going to produce a strictly positive level of output in the short-run (i.e. q > 0), what is the lowest level of q they would be willing to produce and what is the minimum price p they would need to see?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 18PAE

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This was part of my study guide but i didnt have a key to check my answers. Could you solve for part A and B ? No need for long explanations thanks

Question #3
Suppose a firm's short-run cost function is given by the following expression:
C(q) = 10 + 14q – 6q² + q3
A) Assuming this firm's only variable input is labor, for what values of q does this firm experience increasing returns to
labor?
B) If this firm is going to produce a strictly positive level of output in the short-run (i.e. q > 0), what is the lowest level
of q they would be willing to produce and what is the minimum price p they would need to see?

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