Suppose that the long-run total cost curve for each firm is given by TC = 500Q - 20Q2 + Q3, where Q is the quantity of the product. Also, suppose there is free entry and exit. To find the quantity where ATC is minimized, the firm would need to solve the following equation for Q:
A) 500 - 40Q + 3Q2 = 500Q - 20Q2 + Q3.
B) 500 - 40Q + 3Q2 = 500 - 20Q + Q2.
C) 500Q - 20Q2 + Q3 = 500 - 20Q + Q2.
D) It would be impossible to do this without more information.
Correct Answer:
Verified
Q1: (Figure: Profit-Maximizing Output Level I) Total revenue
Q2: (Figure: Revenues and Output I) The total
Q4: (Figure: Firm I) At the profit maximizing
Q5: If the long-run total cost curve for
Q6: Suppose that the perfectly competitive market for
Q7: (Figure: Price and Quantity III) If the
Q8: In a perfectly competitive industry, the long-run
Q9: Suppose that the market for painting services
Q10: Suppose that a firm is earning a
Q11: A firm's short-run total cost is TC
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents