Firm Supply. Wilson Fabricators, Inc., and Johnson City Metalworks, Ltd., are domestic suppliers of backyard basketball goals. Given the vigor of domestic competition, P = MR in this market. Marginal cost relations for each firm are:
where Q is output in units, and MC AVC for each firm.

Question

Firm Supply. Wilson Fabricators, Inc., and Johnson City Metalworks, Ltd., are domestic suppliers of backyard basketball goals. Given the vigor of domestic competition, P = MR in this market. Marginal cost relations for each firm are:
  where Q is output in units, and MC > AVC for each firm.

Quizplus · Accepted Answer

The Answer of Firm Supply. Wilson Fabricators, Inc., and Johnson City Metalworks, Ltd., are domestic suppliers of backyard basketball goals. Given the vigor of domestic competition, P = MR in this market. Marginal cost relations for each firm are:
  where Q is output in units, and MC > AVC for each firm.