skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

. Deriving the Short-Run Supply Curve for a Price-Taking Firm
Suppose that a firm has a short-run total cost curve given by STC = 100+ 20Q + Q2, where the total fixed cost is 100 and the total variable cost is 20Q+ Q2. The corresponding short-run marginal cost curve is SMC= 20 + 2Q. All of the fixed cost is sunk.
(a) What is the equation for average variable cost (AVC)?
(b) What is the minimum level of average variable cost?
(c) What is the firms short-run supply curve?
Answer : a) AVC = TVC/Q = 20 + Q b) As, AVC = 20 + Q So, Its minimum level is where Q = 0 i.e Minimum AVC = 20 c) Short…

n supply curve is same as the MC curve Hence,Short run supply curve : P =20 + 2 Q.


Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top