Suppose you estimate the following cost equation avc 4832, Ask an Expert

Economics

Suppose you estimate the following cost equation: AVC = 4832 – 0.5(Q) + 0.00007(Q)2 At what quantity is AVC minimized Suppose this firm sells 3500 units per month at a price of $4000.00 each and has fixed costs of $10,000 per month. What is the firm’s monthly profit? Suppose this firm operates in a perfectly competitive market. Is it producing the profit maximizing quantity for the current price? Why or Why not?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91865626

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