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The Market for Sweet Potatoes Consists of 1,000 Identical Firms q=P/200.5q = P / 200 - .5

Question 61

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The market for sweet potatoes consists of 1,000 identical firms. Each firm has a short-run total cost curve of STC = 100 + 100 q + 100q2, and a short-run marginal cost curve of SMC=100+200q where q is output. Suppose that sunk costs are 75 and nonsunk costs are 25. What is the equation of an individual firm's short-run supply curve?


A) q=P/200.5q = P / 200 - .5 for P100P \geq 100 , and q=0q = 0 otherwise
B) q=P/100.5q = P / 100 - .5 for P200P \geq 200 , and q=0q = 0 otherwise
C) P=100+200qP = 100 + 200 q
D) q=P/200.5q = P / 200 - .5 for P200P \geq 200 , and q=0q = 0 otherwise

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