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23 August, 02:59

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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  1. 23 August, 03:46
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    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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