Firm Supply. Common Electric Products, Inc., and Lighthouse Manufacturing, Inc., are domestic suppliers of halogen gas light bulbs used in roadside lamps. Given the vigor of domestic and foreign 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. Common Electric Products, Inc., and Lighthouse Manufacturing, Inc., are domestic suppliers of halogen gas light bulbs used in roadside lamps. Given the vigor of domestic and foreign 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. Common Electric Products, Inc., and Lighthouse Manufacturing, Inc., are domestic suppliers of halogen gas light bulbs used in roadside lamps. Given the vigor of domestic and foreign 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.