In the local cotton market, there are 1,000 producers that have identical short-run cost functions. They are: where q is the number of bales produced each period. The short-run marginal cost function for each producer is: MC(q) = 0.05q. If the local cotton market is perfectly competitive, what is each cotton producer's short-run supply curve? Derive the local market supply curve of cotton.

Question

In the local cotton market, there are 1,000 producers that have identical short-run cost functions. They are:  where q is the number of bales produced each period. The short-run marginal cost function for each producer is: MC(q) = 0.05q. If the local cotton market is perfectly competitive, what is each cotton producer's short-run supply curve? Derive the local market supply curve of cotton.

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The Answer of In the local cotton market, there are 1,000 producers that have identical short-run cost functions. They are:  where q is the number of bales produced each period. The short-run marginal cost function for each producer is: MC(q) = 0.05q. If the local cotton market is perfectly competitive, what is each cotton producer's short-run supply curve? Derive the local market supply curve of cotton.

In the Local Cotton Market, There Are 1,000 Producers That