A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s supply function. Is this supply function for the short-run or the long-run? Graph all the relevant curves to illustrate your answer.

A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s supply function. Is this supply function for the short-run or the long-run? Graph all the relevant curves to illustrate your answer.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 6QP

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Question

A perfectly competitive firm’s total cost function is given by c(y) = 100 + 5y^2. Derive this firm’s supply function. Is this supply function
for the short-run or the long-run? Graph all the relevant curves to illustrate
your answer.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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