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Consider three firms out of a competitive industry. They have the following by respectively. technologies: G (y) уг + 2y, G (y) уг + 4 y, and G (y) y2 (a) Derive the firms individual supply curves. (5 pts) (b) Show these curves on a graph. (5 pts) (c) Construct the industry supply curve for these three firms and show it on the same graph. (5 pts) (d) At what prices does the industry supply curve have a kink in it? Explain. (5 pts)

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Answer #1

和llowingHechnologies ry. They have the c, (y), ½ y.zy. C2(y): γespechwely To caluwao g marginal cost curve Ps supply cune n compitetive marke Yor Hha e bust the indhy Supply eurve threa Hrm Now, o marginal cost cunwe is supply cuve in Compitetiv markek 2. da y -1C7 O Horizontal Summatio o mcs o au rms make Supply cuTve. Second Hrm ; y Mc-L4 aaram- 3 ρτ1će mulㅏ be at leas. 4ør above ц Supply would be zero uhen mic deduces below

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Answer #2

Answev Cniventha (a) Hargina cost Cuvue is Suppl curue in competitive Supply ocuwe of secand Firm (HcLyty Supply Cuvve of thivd Cirm +6 b) Cost 2 (c) Horizontao sumrnation of HCS Ơf all Firm m a ke Supply(ww First Firm, у SeCand Fiv НС-2 НС Thivd Firm V NC-6 cast (d) Price must be at least Ч or above Supply waulá be 2eva when price vedute

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