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A highly competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC = 10  + q, where q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a  vertical distance of 10 above the horizontal axis. Given the market short-run supply curve: MC= aQ + b where Q is market output  Solve for a: __1__ Solve for b: __2__ What is the price that would make 500 units forthcoming per time period? __3__

A highly competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC = 10  + q, where q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a  vertical distance of 10 above the horizontal axis. Given the market short-run supply curve: MC= aQ + b where Q is market output  Solve for a: __1__ Solve for b: __2__ What is the price that would make 500 units forthcoming per time period? __3__

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A highly competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC = 10 
+ q, where q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a 
vertical distance of 10 above the horizontal axis. Given the market short-run supply curve: MC= aQ + b where Q is market output 
Solve for a: __1__ Solve for b: __2__ What is the price that would make 500 units forthcoming per time period? __3__

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