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Suppose there are 100 identical competitive firms operating in the Frisbee industry. Each firm's total cost function is: TC=100+10q+2q^2. 4a) Calculate each firm's short run
Suppose there are 100 identical competitive firms operating in the Frisbee industry. Each firm's total cost function is: TC=100+10q+2q^2.
4a) Calculate each firm's short run supply curve.
4b) Calculate the industry supply curve.
4c) If the price of a Frisbee is $18, at what level of output do firms maximize profits in the short run?
4d) Given your answer to part 4c, should these firms produce or shut down?
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