The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?
The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 11E
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***What would this look like in EXCEL, Graph and Table***
The cost function for Acme Laundry is:
TC(q)=10+10q+q^2
so its marginal cost function is:
MC(q)=10+2q
where q is tons of laundry cleaned. Derive the firm's average cost and
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