Question
The market for wheat consists of 500 identical firms, each with the total cost function C(Q) = 90, 000 + 0.00001Q 2 where Q is
The market for wheat consists of 500 identical firms, each with the total cost function C(Q) = 90, 000 + 0.00001Q2 where Q is measured in bushels per year. The market demand curve for wheat is Q = 90, 000, 000 20, 000, 000P , where Q is again measured in bushels and P is the price per bushel. The market is perfectly competitive.
(a) Obtain the average and marginal cost functions of each firm.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
