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QUESTION 17 Suppose that a firm’s short-run total costs are given by STC = 0.25q2 +...

QUESTION 17

  1. Suppose that a firm’s short-run total costs are given by STC = 0.25q2 + 10q + 500.  If this firm behaves as a price taker, what is the equation of the short-run supply?

    q=(1/2)p-10

    q=(1/2)p+10

    q=2p+20

    q=2p-20

4 points   

QUESTION 18

  1. A firm faces the following demand curve: Q=100-4P. Total costs are TC=14Q. What level of output maximizes profit?

    43/2

    88

    44

    14

4 points   

QUESTION 19

  1. Suppose there are 1000 firms each with a short run total cost of STC=q2+(1/2)q+5. If market demand is QD=200-50p, what is the equilibrium price?

    1

    2

    3

    4
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