MC = 1 + 0.000016Q
Firm's supply curve is given by
P = MC and solve for Q
P = 1 + 0.000016Q
P - 1 = 0.000016Q
Q = 1/0.000016(P - 1)
= 62500(P - 1) ( 1/0.000016 = 62500)
So Firm's supply curve Q = 62500(P - 1)
B) Now there are 500 competitors so
n = 500
Market supply Qs = nQ
= 50062500(P - 1)
= 31250000(P - 1)
C)
Market supply at P = 2
Qs = 31250000(2 - 1)
= 31250000
Short-Run Market Supply. New England Textiles, Inc., is a medium-sized manufacturer of blue denim that sells in a perfectly competitive market. Given $25,000 in fixed costs, the total cost function f...
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