(Answered) Profit-maximizing output

Economics

Problem: A price-taking firm's variable cost function is VC = Q3, where Q is its output per week. It has a sunk fixed cost of $3000 per week. Its marginal cost is MC= 3Q2.

Required:

Question: What is its profit-maximizing output when the price is P= $243? What if the fixed cost is avoidable? Explain your answer and provide examples.

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Microeconomics, Economics

Category:- Microeconomics
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