Problem
Dave's Fresh Catfish is a northern Mississippi farm that operates in the perfectly competitive catfish farming industry. Dave's short-run total cost curve is STC(Q) = 400 + 2Q +0.5Q2 , where Q is the number of catfish harvested per month. The corresponding short-run marginal cost curve is SMC(Q) = 2 + Q. All of the fixed costs are sunk.
a) What is the equation for the average variable cost (AVC)?
b) What is the minimum level of average variable costs?
c) What is Dave's short-run supply curve?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.