The next 4 questions refer to the following figure:
These are the cost curves for a perfectly competitive firm.
The next 3 questions refer to the following figure:
The graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for an increasing-cost industry.
The next 7 questions refer to the following:
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC = 4.0 - 0.0024Q + 0.000006Q2
Fixed costs are $500.