Produce Pride, Inc., supplies sweet corn to canneries located throughout Ohio's corn belt region. Like many grain and commodity markets, the market for sweet corn is perfectly competitive. With $500,000 in fixed costs, the company's total costs per ton (Q) are:

TC = $500,000 + $1,000Q + $0.05Q2

A.

Calculate the industry price necessary to induce short-run firm supply of 10,000 tons of sweet corn. Assume that MC > AVC at every point along the firm's marginal cost curve and that total costs include a normal profit. List the demand curve as Q is a function of price in your demand equation.

B.

Calculate what the firm would supply at industry prices of $2,000 per ton.

Hint: if Price = MC in a perfectly competitive market, solve for Q at a price $2,000/ton.

C.

Develop the average variable cost curve (AVC) for Produce Pride, Inc.

TVC =

AVC =