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Use the Following General Linear Supply Function Q5=40+6P8PI+10FQ _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F

Question 24

Multiple Choice

Use the following general linear supply function: Q5=40+6P8PI+10FQ _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F where Q5Q _ { 5 } is the quantity supplied of the good,P is the price of the good, PIP _ { I } is the price of an input,and F is the number of firms producing the good.Now suppose PIP _ { I } = $40 and F = 50,what is the largest amount of the good that firms will supply when the price of the good is $20?


A) 340 units
B) 220 units
C) 120 units
D) 80 units

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