Use the following general linear supply function: $Q _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F$ where $Q _ { 5 }$ is the quantity supplied of the good,P is the price of the good, $P _ { I }$ is the price of an input,and F is the number of firms producing the good.Now suppose $P _ { I }$ = $40 and F = 50,what is the largest amount of the good that firms will supply when the price of the good is $20?

Question

Quizplus · Accepted Answer

Substituting $P = 20$, $P_I = 40$, and $F = 50$ into the supply function gives $Q_5 = 40 + 6(20) - 8(40) + 10(50) = 40 + 120 - 320 + 500 = 340$ units.

Use the Following General Linear Supply Function Q5=40+6P−8PI+10FQ _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 FQ5​=40+6P−8PI​+10F

Use the Following General Linear Supply Function $Q _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F$