Question: Assume a firm's short-run cost function is given by the following expression: C(q)=10+q+q^2 If the firm can sell each unit of their output at a
Assume a firm's short-run cost function is given by the following expression:
C(q)=10+q+q^2
If the firm can sell each unit of their output at a price ofp=3 , what is the firm's profit maximizing level of output (q) in the short-run?
a) 1 unit of output
b) 2 units of output
c) 3 units of output
d) The firm should shut down in the short-run because the profit is less than zero
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