You are considering setting up a business manufacturing and selling giant foam hands (with fingers making the #1 gesture). The market for giant foam fingers is very competitive and the cost of one f... irm is given by C(q) = q 2 − 10q + 64. All firms are identical and firms are free to enter or to exit the industry. Assume that the price for foam fingers is $10. (a) What are the average total cost, average variable cost, and marginal cost functions for a single firm? (b) Suppose you are already operating. If the market price for foam fingers were $10, how many would you produce to maximize your profit? [Show More]

By Evans 9 months ago


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