Suppose that the market for ice cream sandwiches is perfectly competitive. Firms that produce ice cream sandwiches are identical; they have long-run cost functions given by .
a. Derive the marginal and average total cost curves in this industry. (Hint: Use calculus to find marginal cost.)
b. Find the quantity at which average total cost is minimized.

Question

Suppose that the market for ice cream sandwiches is perfectly competitive. Firms that produce ice cream sandwiches are identical; they have long-run cost functions given by  .
a. Derive the marginal and average total cost curves in this industry. (Hint: Use calculus to find marginal cost.)
b. Find the quantity at which average total cost is minimized.

Quizplus · Accepted Answer

The Answer of Suppose that the market for ice cream sandwiches is perfectly competitive. Firms that produce ice cream sandwiches are identical; they have long-run cost functions given by  .
a. Derive the marginal and average total cost curves in this industry. (Hint: Use calculus to find marginal cost.)
b. Find the quantity at which average total cost is minimized.

Suppose That the Market for Ice Cream Sandwiches Is Perfectly