Suppose that the long run cost function of a price taking firm is given by C(q)=13+3q...

 

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Suppose that the long run cost function of a price taking firm is given by C(q)=13+3q² +3q. a. Solve the profit maximization problem of the firm and find the firm's supply function. b. Draw the firm's supply function and average variable cost function on the same graph. Clearly show which is which. c. If price is 15 TL/unit will the firm produce in the short run? If yes how much and what is its producer surplus? Its profits? d. Suppose Market price is 27 TL/unit and there are 50 identical firms (firms with the same cost function) in the market. What is market supply equation? What is total quantity supplied to the market? Suppose that the long run cost function of a price taking firm is given by C(q)=13+3q² +3q. a. Solve the profit maximization problem of the firm and find the firm's supply function. b. Draw the firm's supply function and average variable cost function on the same graph. Clearly show which is which. c. If price is 15 TL/unit will the firm produce in the short run? If yes how much and what is its producer surplus? Its profits? d. Suppose Market price is 27 TL/unit and there are 50 identical firms (firms with the same cost function) in the market. What is market supply equation? What is total quantity supplied to the market?