Under free entry and exit, to find the quantity where ATC is minimized, the firm can:...
Under free entry and exit, to find the quantity where ATC is minimized, the firm can:
A .take the first-order condition of average total cost with respect to Q and solve for Q.
B. Neither A nor B.
C. set marginal cost equal to average total cost and solve for Q.
D. Either A or B.
Homework Answers
D. Either A or B.
(To find the quantity where ATC is minimum, we can find the first-order condition of average total cost with respect to Q and solve for Q, or set MC = ATC and solve for Q because MC = ATC at the minimum of ATC. So, either of these can be done.)
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Under free entry and exit, to find the quantity where ATC is
minimized, the firm can:...
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