- Question 3 The Company Produces Output Q Of 10 Units And Faces This Production Function I Tc 40 4q2 Q3 A Calculate 1 (43.3 KiB) Viewed 38 times
QUESTION 3 The company produces Output(Q) of 10 units and faces this production function i TC = 40+ 4Q2+Q3 a) Calculate the TFC TVC, AVC and MC b) Graphically, show the relationship between MC, AVC and ATC. c) Show on the graph how short run and long run average costs interact to determine the optimum output ii. What are the 4 main sources of monopoly? Use the graph to explain how monopolist maximizes profit at the point where MR=MC iv. What are the four features of a oligopolistic market? Why is it that the price in oligopoly are generally sticky? 111