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Given the standard assumptions about the firm's total cost functionU-shaped average costs AC(q) and AVC(q), an increasing marginal cost MC(c), all fixed costs F are
Given the standard assumptions about the firm's total cost functionU-shaped average costs AC(q) and AVC(q), an increasing marginal cost MC(c), all fixed costs F are sunkdraw the short-run supply curve q S (p) of a single firm in the perfectly competitive market. That is, show how much output q S is produced by the firm for each market price p > 0. Label axes and all important points on the graph.
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