Home / Questions / A competitive firm has an AVC y3 and a fixed cost equal to 9 a Derive the firm's cost fun...
A competitive firm has an AVC = y+3, and a fixed cost equal to 9 a. Derive the firm's cost function C(v), marginal cost function SMC(v) and average cost SAC(v). Show AVC, SMC and SAC on a graph. b. Suppose the market price is 15. How many units would the firm produce? Determine the associated profit and producer surplus for the firm. Explain any difference.
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