Question
Suppose you are the manager of a small chemical company operating in a competitive market. Your cost of production can be expressed as C = 100 + Q2, where Q is the level of output and C is total cost.
a. Is this a short-run cost function?
b. What is the marginal cost function?
c. What is the level of total fixed cost?
d. If the price of chemicals is $60, what quantity of chemicals should be produced to maximize profit?
e. What will be the level of profits?
a. Is this a short-run cost function?
b. What is the marginal cost function?
c. What is the level of total fixed cost?
d. If the price of chemicals is $60, what quantity of chemicals should be produced to maximize profit?
e. What will be the level of profits?
Answers
Take a shot, what do you think?
query. By Q2, do you really mean Q^2?
query. By Q2, do you really mean Q^2?