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The daily cost of producing pizza in New Haven is C ( Q )=4 Q +( Q^ 2/40). The marginal cost is MC =4+( Q

The daily cost of producing pizza in New Haven is

C(Q)=4Q+(Q^2/40).

The marginal cost is

MC=4+(Q/20).

1. What is the market supply function if there are 10 firms making pizza?

a. Q = 200P - 800 if P < $4.00; Q = 0 if P $4.00.

b. Q = 20P - 80 if P > $4.00; Q = 0 if P $4.00.

c.Q = 200P - 800 if P > $4.00; Q = 0 if P $4.00.

d. Q = 800P - 200 if P > $4.00; Q = 0 if P $4.00.

2.What is the market supply curve under free entry?

a.A horizontal line at AC = $4.00.

b.A vertical line at AC = $4.00

c.A horizontal line at AC = $10.00

d.A vertical line at AC = $20.00

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