The market for sweet potatoes consists of 1,000 identical firms. Each firm has a short-run total cost curve of STC = 100 + 100 q + 100q2, and a short-run marginal cost curve of SMC=100+200q where q is output. Suppose that sunk costs are 75 and nonsunk costs are 25. What is the equation of an individual firm's short-run supply curve?
A) for P?100, and q=0 otherwise.
B) for P?200, and q=0 otherwise.
C)
D) for P ?200, and q=0 otherwise.
Correct Answer:
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