- 7 Suppose The Same Firm S Cost Function Is C Q 4q 16 A Find Variable Cost Fixed Cost Average Cost Aver Age Va 1 (58.94 KiB) Viewed 20 times
7. Suppose the same firm's cost function is C(q) 4q² + 16. a. Find variable cost, fixed cost, average cost, aver- age va
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7. Suppose the same firm's cost function is C(q) 4q² + 16. a. Find variable cost, fixed cost, average cost, aver- age va
7. Suppose the same firm's cost function is C(q) 4q² + 16. a. Find variable cost, fixed cost, average cost, aver- age variable cost, and average fixed cost. (Hint: Marginal cost is given by MC = 8q.) b. Show the average cost, marginal cost, and average variable cost curves on a graph. = c. Find the output that minimizes average cost. d. At what range of prices will the firm produce a pos- itive output? e. At what range of prices will the firm earn a nega- tive profit? f. At what range of prices will the firm earn a positive profit?