Use the following general linear supply function: where is the quantity supplied of the good,P is the price of the good, is the price of an input,and F is the number of firms producing the good.Suppose = $40 and F = 50,what is the lowest price that will induce firms to supply 400 units of output?
A) $15
B) $20
C) $25
D) $30
E) $35
Correct Answer:
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