1 thought on “the short run function of her is an under: TC=200+5Q+2Q2 what will be the level of output at which AC and MC will be equal”
Answer:
Presumably, this question is about a firm operating in a competitive market, since it contains no information about the impact of the produced units on the market price.
A firm’s production level reaches its optimum and hence maximizes profit when the firm produces where marginal revenue equals marginal costs, i.e. MR=MC (1)
In a competitive market any particular firm is a price-taker and, therefore, MR=P and (1) becomes MC=P.
Answer:
Presumably, this question is about a firm operating in a competitive market, since it contains no information about the impact of the produced units on the market price.
A firm’s production level reaches its optimum and hence maximizes profit when the firm produces where marginal revenue equals marginal costs, i.e. MR=MC (1)
In a competitive market any particular firm is a price-taker and, therefore, MR=P and (1) becomes MC=P.