You are the manager of a firm that produces a product according to the cost function C(q_i) = 160 + 58q_i 6q_i² + q_i³. Determine the short-run supply function if: (Note: q^2 is equivalent to q²)

a. You operate a perfectly competitive business.

multiple choice 1

• P = 58 12q + 3q^2 if P is greater than or equal to $49; otherwise the firm produces zero units.
• P = 40 8q + 2q^2 if P is greater than or equal to $55; otherwise the firm produces zero units.
• P = 35 15q + 3q^2 if P is greater than or equal to $52; otherwise the firm produces zero units.
• There is no supply curve in this case.

b. You operate a monopoly.

multiple choice 2

• P = 35 15q + 3q^2 if P is greater than or equal to $52; otherwise it produces zero units.
• P = 58 12q + 3q^2 if P is greater than or equal to $49; otherwise, the firm produces zero units.
• P = 40 8q + 2q^2 if P is greater than or equal to $55; otherwise, the firm produces zero units.
• There is no supply curve in this case.

c. You operate a monopolistically competitive business.

multiple choice 3

• P = 35 15q + 3q^2 if P is greater than or equal to $52; otherwise, the firm produces zero units.
• P = 58 12q + 3q^2 if P is greater than or equal to $49; otherwise, the firm produces zero units.
• P = 40 8q + 2q^2 if P is greater than or equal to $55; otherwise, the firm produces zero units.
• There is no supply curve in this case.