Suppose a firm's cost function is C(q) = 4q² + 16, where C(q) is the total cost, and q is the level of output. Find the output that minimises average cost. At what range of prices will the firm carn a negative profit? At what range of prices will the firm earn a positive profiť?

Suppose a firm's cost function is C(q) = 4q² + 16, where C(q) is the total cost, and q is the level of output. Find the output that minimises average cost. At what range of prices will the firm carn a negative profit? At what range of prices will the firm earn a positive profiť?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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Suppose a firm's cost function is C(q) = 4q² + 16, where C(q) is the total cost, and q is the level
of output.
Find the output that minimises average cost.
At what range of prices will the firm carn a negative profit?
At what range of prices will the firm earn a positive profiť?

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