How low does the market price have to be for the firm

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Reference no: EM13148682

Suppose a competitive firm has the following variable cost function:

\(VC(Q)=16Q+4Q^{2}\) And the firm%u2019s fixed costs are FC=36 .

a. How low does the market price have to be for the firm to take a loss in the short-run?

b. How low does the market price have to be for the firm to be better off shutting down in the short-run?

Reference no: EM13148682

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