Suppose the MCs for the following two tennis ball suppliers: MC1=3+0.5Qs, MC2=5+0.5Qs
a. Drive and graph the aggregate supply curve
b. If the price of the product is $4 per unit, can each of these producers stay in business?If yes, how much will each produce?
c. If the price of the product is $6 per unit, can each of these producers stay in business? If yes, how much will each produce?