Firm Supply Curve
Suppose that the short-run cost function for a firm is TC (q) = 0.1q3 − 2q2 + 15q + 10.
1. Calculate the average cost and marginal cost.
2. From the firm profit maximization behavior, solve the firm’s short run supply curve.
3. Now consider the long run equilibrium in a perfectly competitive market. What are the conditions for the long run equilibrium to hold?