Question: b) Below which price does firm A shut down? How about firm B?c) Above which price does firm A start to make positive profits? How

b) Below which price does firm A shut down? How about firm B?c) Above which price does firm A start to make positive profits? How about firm B?

Question 3 (20 points) Consider an industry with two firms, A and B, which are characterized by the following short-run cost function C (q) = q + 10q + 25 and C (q) = 3q + 5q + 6. a) Calculate the short-run supply function of firm A and B

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