A competitive firm has a quadratic cost function of the form: c(q) = 10 + 2q2. In the short run when fixed costs are unavoidable the firm should: a)...
View the step-by-step solution to:

Question

 A competitive firm has a quadratic cost function of the form: c(q) = 10 + 2q2. In the short run when fixed costs

are unavoidable the firm should: a) Continue operating for any positive price. b) Continue operating provided that price is grater than or equal to 10. c) Shut down if total costs (variable plus fixed) falls below total revenue. d) Shut down if average cost is greater than price.

Top Answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question