3) A competitive firm's cost of producing q units of output is C = 18 + 4q +q2 Its corresponding marginal cost is MC = 2q +4 The firm faces a market price Create a spreadsheet with 1, 2, ..., 15, where the columns are q, R, C, VC, AVC, MC, and profit. Determine the profit - maximizing $24. Should the = output for the firm and the corresponding profit at p firm produce this level of output, or should it shut down? Explain briefly. (

3) A competitive firm's cost of producing q units of output is C = 18 + 4q +q2 Its corresponding marginal cost is MC = 2q +4 The firm faces a market price Create a spreadsheet with 1, 2, ..., 15, where the columns are q, R, C, VC, AVC, MC, and profit. Determine the profit - maximizing $24. Should the = output for the firm and the corresponding profit at p firm produce this level of output, or should it shut down? Explain briefly. (

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter10: The Firm And The Industry Under Perfect Competition

Section: Chapter Questions

Problem 4TY

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