Question

Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The marginal cost is given by MC = 10 + (Q/80).
a. How many spaghetti dinners should the firm make each day?
b. What if the firm has avoidable fixed costs of $1562.50?
c. What is the firm's supply function if there is no avoidable fixed cost?
d. What is the supply function if the firm has avoidable fixed costs of $1562.50?



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  • CreatedAugust 26, 2013
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