How low does the market price have to be for the firm to, Ask an Expert

Economics

Suppose a competitive firm has the following variable cost function:

$VC(Q)=16Q+4Q^{2}$ And the firm%u2019s fixed costs are FC=36 .

a. How low does the market price have to be for the firm to take a loss in the short-run?

b. How low does the market price have to be for the firm to be better off shutting down in the short-run?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9438826

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