Suppose that Hannah and Sam’s short-run and long-run cost functions are CSR(Q) = 10000+Q2 and CLR(Q) = 200Q. Given these cost function, their marginal cost is MCSR = 2Q, and their long-run marginal cost is MCLR = 200.
(a) What are their long-run supply functions?
(b) What are their short-run supply functions?