Assume that there are 100 identical company in the perfectly competitive cabbage industry. Each firm has a short-run total cost curve given by ST C = 0.5Q2 − 10Q + 300. Solve the following: 1. Derive expressions for the corresponding short-run average cost, average variable cost, average fixed cost curve, and marginal cost. 2. Calcalute the firm’s short-run supply curve with market price (P) as a function of Q (the number of kilos of cabbage) 3. Show the industry supply curve for the 50 firms in this industry

Assume that there are 100 identical company in the perfectly competitive cabbage industry. Each firm has a short-run total cost curve given by ST C = 0.5Q2 − 10Q + 300. Solve the following: 1. Derive expressions for the corresponding short-run average cost, average variable cost, average fixed cost curve, and marginal cost. 2. Calcalute the firm’s short-run supply curve with market price (P) as a function of Q (the number of kilos of cabbage) 3. Show the industry supply curve for the 50 firms in this industry

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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