Answer to Question #133482 in Microeconomics for Shaiku jagitay

Question #133482
How to derive individual and market supply functions from cost function
1
Expert's answer
2020-09-16T10:06:14-0400

The first derivative of the cost function is the inverse individual supply function. Then rearrange this equation to find Q and get the direct cost function. Market supply function is the sum of all individual supply functions. As far as all the firms on the competitive market have the same costs, then market supply Qs=qs×m, where qs is an individual supply, m is the quantity of firms on the market.


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