Question: Suppose a firm's short - run cost function is C ( q ) = 5 0 0 + 3 0 0 q 3 q 2

Suppose a firm's short-run cost function is C (q)=500+300q 3q2+1/2q3.
Determine the fixed costs, the variable costs, the average costs, average variable costs, the average fixed costs as well as the marginal costs. At what output level does the marginal cost curve cross the average cost curve? Give a verbal (intuitive) explanation!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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

Students Have Also Explored These Related Economics Questions!