Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.The short-run supply curve for each firm is A) $q = 0.5 ( P - 1 )$ B) $q = \sqrt { P } - 3$ C) $q = P - 1 + 1 / \sqrt { P }$ D)$q = p - 1$

Question

Quizplus · Accepted Answer

The marginal cost (MC) is given as $MC = 2q + 1$. In a competitive market, firms set the price $P$ equal to the marginal cost $MC$. Therefore, $P = 2q + 1$. Solving for $q$ gives $q = 0.5(P - 1)$, which matches choice A.

Suppose There Are 100 Firms Each with a Short Run q=0.5(P−1)q = 0.5 ( P - 1 )q=0.5(P−1)

Suppose There Are 100 Firms Each with a Short Run $q = 0.5 ( P - 1 )$