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:

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