9.8. Dave’s Fresh Catfish is a northern Mississippi farm that operates in the perfectly competitive catfish farming industry. Dave’s short-run total cost curve is STC(Q) !

400 " 2Q " 0.5Q2

, where Q is the number of catfish harvested per month. The corresponding short-run marginal cost curve is SMC(Q) ! 2 " Q. All of the fixed costs are sunk.

a) What is the equation for the average variable cost

(AVC)?

b) What is the minimum level of average variable costs?

c) What is Dave’s short-run supply curve?