Question
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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