A firm has a long-run cost function, C(q)= 4q² + 4.In the long run, this firm will supply a positive amount of output, as long as the price is greater than

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In the long run, a firm will supply a positive amount of output if the price is greater than the minimum average cost. The average cost function is AC(q) = (4q^2 + 4)/q = 4q + 4. The minimum average cost occurs when q = 1, giving AC(1) = 8. Thus, the price must be greater than $8.

A Firm Has a Long-Run Cost Function, C(q)= 4q2

A Firm Has a Long-Run Cost Function, C(q)= 4q²