Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The market for sweet potatoes consists of 1,000 identical firms. Each firm has a short-run total cost curve of STC = 100 + 100 q

The market for sweet potatoes consists of 1,000 identical firms. Each firm has a short-run total cost curve of STC = 100 + 100 q + 100q^2, and a short-run marginal cost curve of SMC=100+200q, where q is output. What is the equation of the firm's average variable cost curve?

***DO NOT COPY ANSWER AS THEY ARE WRONG.***

I know that STC=TVC+TFC --> ATC=AVC+ATC and from equation STC=100+100q+100q^2 so ATC=100/q+100+100q. Then what should I do?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Social Media Marketing A Strategic Approach

Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher

1st edition

538480874, 978-1285402147, 1285402146, 978-0538480871

More Books

Students also viewed these Economics questions

Question

-8 + 5 Find the sum by hand.

Answered: 1 week ago