Question: A competitive firm has the following short-run cost function: c(y) = y3 8y2 + 30y + 5. (a) The firms marginal cost function is ___________.

A competitive firm has the following short-run cost function: c(y) = y3 ˆ’ 8y2 + 30y + 5.
(a) The firm€™s marginal cost function is ___________.
(b) The firm€™s average variable cost function is ___________.
(c) Average variable cost is falling as output rises if output is less than 4 and rising as output rises if output is greater than ______.
(d) Marginal cost equals average variable cost when output is _______.
(e) The firm will supply zero output if the price is less than _____.
(f) The smallest positive amount that the firm will ever supply at any price is _____. At what price would the firm supply exactly 6 units of output? ______.

A competitive firm has the following short-run cost function: c(y)

Costs 30 20 10

Step by Step Solution

3.41 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a MCy 3y 2 16y30 b AVCy y 2 8y 30 c Average variable cost is falling as o... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

649-B-E-D-S (1122).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!