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C = 160,000,000 + 100Q + 0.0063212Q2

VC = 100Q + 0.0063212Q2
MC= 100 + 0.0126424Q

Q= 13525

P= 595.60

Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm's price must cover average variable costs in the short run and average total costs in the long run to continue operations.)

Microeconomics, Economics

  • Category:- Microeconomics
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