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11-03-2020
Engineering

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You are the manager of a firm that produces a product according to the cost function C(qi) = 160 + 58qi – 6qi2 + qi3. Determine the short-run supply function if:

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zubam2002 zubam2002

13-03-2020

Answer:

260 units

Explanation:

C(qi) = 160 = 58(qi) - 6(qi)² + (qi)³

dC/d(qi) = 58 - 12(qi) + 3(qi)²

d²C/d(qi)² = 6qi - 12

For d²C/d(qi)² = 0

Hence, 6qi - 12 = 0

6(qi - 2) = 0

∴ qi = 2

When, qi = 2: C(qi) = 160 + 116 - 24 + 8 = 260 units

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