Suppose a competitive firm produces spaghetti dinners.The market price of a spaghetti dinner is $20.The cost of making the dinners is given by C(Q)= 10Q + (Q²/160).The marginal cost is given by MC = 10 + (Q/80).
(a)How many spaghetti dinners should the firm make each day?
(b)What if the firm has avoidable fixed costs of $1562.50?
(c)What is the firm's supply function if there is no avoidable fixed cost?
(d)What is the supply function if the firm has avoidable fixed costs of $1562.50?

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The Answer of Suppose a competitive firm produces spaghetti dinners.The market price of a spaghetti dinner is $20.The cost of making the dinners is given by C(Q)= 10Q + (Q²/160).The marginal cost is given by MC = 10 + (Q/80). (a)How many spaghetti dinners should the firm make each day? (b)What if the firm has avoidable fixed costs of $1562.50? (c)What is the firm's supply function if there is no avoidable fixed cost? (d)What is the supply function if the firm has avoidable fixed costs of $1562.50?

Suppose a Competitive Firm Produces Spaghetti Dinners