Re: JNU Doubts

Posted by Arushi :)) on May 12, 2014; 2:43pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-Doubts-tp7589336p7589434.html

yeah, thats also the possible case,,
But if you draw the diagram , then in that case AC is decreasing function of q,
and that would imply that he should chose a q after the point where P = AC coz only then there are profits for the firm,
But no such option is there , so we have to neglect Tc = k Q + C
And carry on with Tc = K Q so that MC = AC and so any output gives zero profit.