Answered: Suppose marginal cost and average cost…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 19PAE

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1. Suppose marginal cost and average cost are given by the following expressions: MC(x)=3x^1/2, AC(x)=2x^1/2. What is the profit maximising quantity when p=$3?

2. Suppose marginal cost and average cost are given by the following expressions: MC(x)=3x^1/2, AC(x)=2x^1/2. What is the value pf the long-run break-even price?

3. For any given level of the price of output, the supply curve of a producer tells the producer the amount of output to produce in order to maximise profits

a. True

b. False

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