Determining minimum variable costs of cost function

Assignment Help Microeconomics
Reference no: EM1370066

The average variable cost equation for the competitive firm is:

AVC = 10 - 2Q + 0.5Q^2

1. At what output is AVC at minimum?

2. If the market price of firm's output is $7 per unit, should the firm produce or shut down?

Reference no: EM1370066


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