2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TC(q) = 2+4q+q² TCB (q) = 8+4q+6q² (a) Derive the short-run supply curve for each firm type (b) What is the short-run market supply, if there are 6 Type A firms, and 12 Type B firms? (c) What is total quantity produced when p=10? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that p=10 and that there are 6 Type A firms and 12 Type B firms.
2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TC(q) = 2+4q+q² TCB (q) = 8+4q+6q² (a) Derive the short-run supply curve for each firm type (b) What is the short-run market supply, if there are 6 Type A firms, and 12 Type B firms? (c) What is total quantity produced when p=10? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that p=10 and that there are 6 Type A firms and 12 Type B firms.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost
functions
TC(q) = 2+4q+q²
TCB (q) = 8+4q+6q²
(a) Derive the short-run supply curve for each firm type
(b) What is the short-run market supply, if there are 6 Type A firms, and 12 Type B firms?
What is total quantity produced when p=10?
(d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume
again that p=10 and that there are 6 Type A firms and 12 Type B firms.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4346761a-0140-452b-a6bd-a6a1421e4117%2Fc896d977-1070-4f43-958a-b415c70cead1%2Fgqquy2v_processed.png&w=3840&q=75)
Transcribed Image Text:2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost
functions
TC(q) = 2+4q+q²
TCB (q) = 8+4q+6q²
(a) Derive the short-run supply curve for each firm type
(b) What is the short-run market supply, if there are 6 Type A firms, and 12 Type B firms?
What is total quantity produced when p=10?
(d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume
again that p=10 and that there are 6 Type A firms and 12 Type B firms.
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