The market for sweet potatoes consist of 1,000 identical firms. Each firm has a shot-run total cost curve of STC = 100 + 100q + 100q ² , and a short-run marginal cost curve of SMC = 100 + 200q where q is output. Suppose that sunk costs are 75 and non-sunk costs are 25. What Is the equation of an individual firm’s short-run supply curve?

a. q = P / 200 – 5 for P ≥ 100, and q = 0 otherwise.

b. q = P / 100 – 5 for P ≥ 200 and q = 0 otherwise.

c. P = 100 + 200q

d. q = P / 200 – 5 for P ≥ 200, and q = 0 otherwise.

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Recall that the supply curve is simply the marginal co... View the full answer