Question

A price-taking firm's variable cost function is         VC=3Q3, where Q is its output per week....

A price-taking firm's variable cost function is

        VC=3Q3,

where Q is its output per week. It has a sunk fixed cost of $750 per week. Its marginal cost is

        MC=9Q2.

a. What is the firm’s supply function when the $750 fixed cost is sunk?

    Instructions: Enter your answer as a whole number.

     Q = (P/9)0.5 for P ≥ $.

b. What is the firm’s supply function when the fixed cost is avoidable?

     Instructions: Enter your answer as a whole number.

     Q = (P/9)0.5 for P ≥ $.

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