Suppose a perfectly competitive firm has the short-run cost function C = 125 + q2. Use the derivative formula or marginal cost to determine the firm’s output level and profit at prices of $30 and $20. At what price does the firm reach the shut-down point?

Answer rating: 100% (QA)

To find the firms output level and profit at prices of 30 and 20 we first need to calculate the marg... View the full answer