Operating in perfectly competitive market

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Suppose that the manager of a firm operating in perfectly competitive market has estimated the firm's average variable cost function to be AVC=4000-5Q+0.002Q2 Total fixed cost is $62500. The firm across the street is charging $1000 per unit that they sell. a. What is the minimum value for AVC? b. How much output should the firm produce in the short run? c. How much profit will the firm earn? Hint: If we face the following quadratic equation : ax2+bx+c=0 then we can find x using this formula: x = (-b +/- (squareroot of b^2-4ac) )/2a Please use the largest number as your solution.

Reference no: EM131808156

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