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I assume that the firm is a monopolist. We know the inverse demand function, the fixed costs and the marginal costs: $P(q) = 20 - q$ $MC(q) = 12$ $F = 16$ As the marginal costs are constant, we can compute the total costs function as: $TC(q) = MC\cdot q + F = 12 q + 16$ The average total costs is obtained by dividing by $q$: $AC(q) = \frac{TC(q)}{q} = ...


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