What price do you expect to prevail in the widget market

Reference no: EM13199173

A local widgets firm hires you to analyze their cost structure. The firm's industry is nearly perfectly competitive in all requisite characteristics.

The company has given you the short run cost functions from existing data:
TC=800 +60Q-4.5Q^2+.15Q^3 (total cost, in thousands of dollars)
MC=60-9Q+.45Q^2 (marginal cost, in thousands of dollars)

Q measures the number of widgets produced, in hundreds Based on the above information

A.) Find the quantity of widgets where ATC and AVC are at their minimum

B.) Formulate an expression for the firm's short run supply curve

C.) What price do you expect to prevail in the widget market

Reference no: EM13199173

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