A price-taking firm's variable cost function is vC = 20°, where Qis its output per week. It has a sunk fixed cost of $256 per week. Its marginal co MC = 6Q°. a. What is the firm's supply function when the $256 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q= (PI6)0.5 for Pz$| b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. DIS0.5 for af

A price-taking firm's variable cost function is vC = 20°, where Qis its output per week. It has a sunk fixed cost of $256 per week. Its marginal co MC = 6Q°. a. What is the firm's supply function when the $256 fixed cost is sunk? Instructions: Enter your answer as a whole number. Q= (PI6)0.5 for Pz$| b. What is the firm's supply function when the fixed cost is avoidable? Instructions: Enter your answer as a whole number. DIS0.5 for af

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 1QP

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