Question: Your estimated Total Cost function is TC = 1 0 0 + 1 0 Q + 0 . 0 2 Q 2 Your current output
Your estimated Total Cost function is TC Q Q
Your current output is Q
Given your Marginal Cost at Q units, if you can sell every unit you make at the price P$ then your current output of Q is
Question options:
a
too low, you could increase profits if you increased your output
b
too high, you could increase profits if you decreased your output
c
the profit maximizing level of output
d
I would not pick this answer
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