Problem 2 Suppose there are 1,000 identical cotton farms. Each farm's short-run cost function is given by: TC= 100+ 2q2 where q is the output of a firm TC 100+q 100 q q Each farm's average total cost: ATC Each farm's average variable cost: AVC = == = q VC = q 2q q = + 2q -= 29 Each farm's marginal cost: MC = = 4q d (TC) dq Each farm's short-run supply curve is the portion of the MC curve above the price level, where MC = p The cotton industry's short-run supply curve is the sum of all farm's supply curve: Qs = 1,000q

- Suppose there are 1,000 identical cotton farms. Each farm's short-run cost function is given by: TC=100+2q2 where q is the output of a firm - Each farm's average total cost: ATC=qTC=q100+q2=q100+2q - Each farm's average variable cost: AVC=qVC=q2q2=2q - Each farm's marginal cost: MC=dqd(TC)=4q - Each farm's short-run supply curve is the portion of the MC curve above the price level, where MC=p - The cotton industry's short-run supply curve is the sum of all farm's supply curve: Qs=1,000q Question 2b Homework - Answered - Due Today, 11-59 PM At any given price p, the market supply (with 1,000 firms) will be Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Q=1000p Q=500 Q=250p Q=100p Question 2c Homework * Answered + Due Today, 11:5) Pin Suppose that the market demand for teh product is given by Q=350,000100. What would be the market equiblium price? Hint: the market supply that you found in Question 2b should be equal to market demand. Type your answer and submit x,x. Write your response here. Question 2a Homework + Answered - Due Today, H 1159 PM At any given price, each firm will supply (., L. e., produce and sell) Select an answer and submit. For keyboard nawigation, use the up/down arrow keys to select an answer. a q=0.25p b q=0.50 q=0.75 d q=2p Question 2d Homework * Answered - Due Today, 11:59 PM How much output each firm will produce? Hint: Substitute the price in the firm's supply equation. Type your numeric answer and submit