Question

Total cost =400+20q-2qsquare+2/3qcube, determine the firm's Short run supply curve with its graph

Answer 1

Solution:

TC = 400 + 20q – 2q² + 2/3q³

SMC = $\frac{\partial TC} {\partial Q}$ = 20 – 4q + 2q²

SAC = $\frac{TC}{Q}$ = 400 + 20q – 2q² + $\frac{2}{3}$ q³ $\div$ q = $\frac{400}{q}$ + 20 – 2q + $\frac{2}{3}$q²

SAVC = $\frac{VC}{Q}$ = 20q – 2q² + $\frac{2}{3}$q³$\div$ q = 20 – 2q + $\frac{2}{3}$q²