Suppose a fiem's total variable costs are given by TVC (g) -3 g, and it has a fixed cost of 787 of which 507 is avoaidable, We want to find the firms Bupply. Lets first find the minimum of the average variable and avoidable costs. This will alow us to find the price below which the firm wil not produce. Remember for decisionmaking only the avoidable fixed cost matter. This occurs are qe The price at which the firm just breaks even is P The fem's supply, hen is q A for PS E nd for P> 固助 Please give the supply in terme of upper case P and please une tractions.

Suppose a fiem's total variable costs are given by TVC (g) -3 g, and it has a fixed cost of 787 of which 507 is avoaidable, We want to find the firms Bupply. Lets first find the minimum of the average variable and avoidable costs. This will alow us to find the price below which the firm wil not produce. Remember for decisionmaking only the avoidable fixed cost matter. This occurs are qe The price at which the firm just breaks even is P The fem's supply, hen is q A for PS E nd for P> 固助 Please give the supply in terme of upper case P and please une tractions.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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