Hello all! any economics students that can help me?
I'm stuck on this question on deriving the market supply curve in the short run. I'm given the following information:
In a perfectly competitive market for chips, market demand is Q_D=20000-400P
There are 1200 factories facing the following costs: FC=25 , VC=q^2 , MC=2q. The average total cost for a factory is minimised at q=5.I'm not exactly bright on what to do... so a step by step walk through would be greatly appreciated. I did look at the answers and it said, in the short run, market supply curve Q_S=600P. Absolutely no idea how they even got that ):
ShyriaXilOP
#1