Question
If a competitive firm's cost function is $C(q)=a+b q+c q^{2}+d q^{3},$ where $a, b, c,$ and $d$are constants, what is the firm's marginal cost function? What is the firm's profit-maximizing condition? $C$
Step 1
The marginal cost is the derivative of the cost function with respect to quantity. So, we take the derivative of the cost function $C(q)=a+bq+cq^{2}+dq^{3}$ with respect to $q$. Show more…
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