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What is the minimum market price

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Question - As seen previously, the break-even point is the point where the marginal cost (MC) equals the average total cost (ATC). The shut-down point of production, on the other hand, is the price at which the marginal cost does not even cover the average variable cost (ATC). At this point, the company is better off stopping its production than keeping to produce at a loss. Suppose the hospital operates in a perfectly competitive market. The market price of this product is $40.

Assume that a manufacturing company - Total Cost (TC) function is TC = 20q - 6q2 + q3"

What is the minimum market price for which you will choose to produce?

Reference no: EM133139116

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