Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2 Derive the market supply curve
What will be an ideal response?
For each MC = 2q and AVC = q. Thus MC > AVC for all levels of output. The firm sets p = 2q or q = 0.5p. Since there are 1000 firms each producing q, market supply equals Q = 500p.
Economics
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The average propensity to consume is the
A) percentage of total disposable income consumed. B) ratio of changes in planned consumption to changes in real disposable income. C) rate at which real disposable income changes as planned consumption changes. D) slope of the consumption function.
Economics
Which of the following best defines what money is now and what it has been in the past?
A) currency plus credit cards B) anything accepted as a means of payment C) currency D) anything used as a store of value E) currency plus checking deposits
Economics