A perfectly competitive firm has the following cost
function:
C(q) = q^2 + 5q + 20
a. If the P = 25, what level of q should the firm produce to
maximize its profits? How much
profit does the firm earn at this level of q?
b. Solve for the firm’s supply function. Illustrate the supply
function on a graph.
c. If there are 10 identical firms in this market, what is the
industry supply function?
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