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27 May, 03:07

Suppose a perfectly competitive firm's total cost of production (TC) is:

TC (q) = q^3 - 10q^2 + 30q + 5,

and the firm's marginal cost of production (MC) is:

MC (q) = 3q^2 - 20q + 30.

The firm's short-run supply curve is given by

O P = q^2 - 10q + 30 + 5/q.

O P = 3q^2 - 20q + 30 for prices above $2.5.

O P = q^2 - 10q + 30 for prices above $5.

O P = 3q^2 - 20q + 30 for prices above $5.

O P = q^2 - 10q + 30 for prices above $10.

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Answers (1)
  1. 27 May, 06:35
    0
    P = 3q^2 - 20q + 30 for prices above $5.

    Explanation:

    Supply curve is rising Marginal cost
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