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Suppose the short run cost function for a competitive firm is C(Y)= 4Y2+ 200 where Y...

Suppose the short run cost function for a competitive firm is C(Y)= 4Y2+ 200 where Y is the total output. Find the profit maximizing supply for the firm if the output price is $16 and the maximum profit. What is its short run decision: To produce or not to produce?

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Answer #1

DAILY PLAN DATE cly) = 4y?+ 200 brofit = Total Revenue Total Cost π = 16 Y Чу? 200 - O dr 16 8Y dy y*= 2 - Supply of fiem. be

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