Fixed, variable, and marginal cost
11:49
Fixed, variable, and marginal cost
Jan 21, 2012
Khan AcademySal Khan
SOLVED:Suppose that a firm has a marginal cost function given by M C(q)=q 1 a. What is this firm's total cost function? Explain why total costs are known only up to a constant of integration, which represents fixed costs. b. As you may know from an earlier economics course, if a firm takes price (p) as given in its decisions, then it will produce that output for which p=M C(q). If the firm follows this profit-maximizing rule, how much will it produce when p=15 ? Assuming that the firm is just br
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