Consider an industry with identical firms. Suppose the cost function of firm i, i=1,...,n, is given by
Ci(qi) = 9 qi2 + 86
If a total of Q=400 units is produced efficiently in this industry, what will be the industry total cost of these 400 units?
(As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number.)
22254.99 (There is productive efficiency whic means that AC is minimum and P = minimum of AC. AC = C/q = (9q2/q) + (86/q) = 9q + (86/q) So, d(AC)/dq = 9 + (-86/q2) = 0 So, 9 = 86/q2  So, q2 = 86/9 ... See the full answer