3. (25 points) Consider two firms out of a competitive industry. They have the following technologies:...

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3. (25 points) Consider two firms out of a competitive industry. They have the following technologies: C(y) = y + 2y; C2(y) = 1.5y + 3y. Show these firms' individual supply functions on a clearly-labelled graph. Con- struct an aggregate supply function for these two firms on your graph. 3. (25 points) Consider two firms out of a competitive industry. They have the following technologies: C(y) = y + 2y; C2(y) = 1.5y + 3y. Show these firms' individual supply functions on a clearly-labelled graph. Con- struct an aggregate supply function for these two firms on your graph.

Answer rating: 100% (QA)

To construct the individual supply functions for the two firms we need to plot their cost functions ... View the full answer