Posted by 413 on .
The demand for item A is
The production of A entails the following average variable costs:
AVC=1.5Q - 35
Fixed Costs are 24.
a) Calculate the revenue maximizing price of A
Revenue' = 40-7Q
b) Calculate the output level that minimizes the Average total cost.
-What is the average total cost equation?
do you just add the fixed cost to the AVC
is it finding variable cost first by dividing AVC by Q, then adding the fixed cost, then divide by Q