1. Suppose a firm's cost function is given by C(Q)=6Q+Q^2 when it produces Q units of its product.
This small, profit-maximizing firm is active in a perfectly competitive market. After observing the
going price for its product, it decides to produce 3 units of output: Q=3. What is the firm's elasticity
of supply?
1.5
b. 2*
c. 2.5
d. 3
a.
