The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?= 6? + 10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Do these firms have any fixed costs? Explain. b) Find each firm’s short run AVC and short run MC. c) What is the shutdown point for these firms? In other words, at what price will the firms choose not to produce?

The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?= 6? + 10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Do these firms have any fixed costs? Explain. b) Find each firm’s short run AVC and short run MC. c) What is the shutdown point for these firms? In other words, at what price will the firms choose not to produce?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of ?=6?+10?2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Find the short run supply curve for these firms. b) Find the market supply curve for sweet potatoes.
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