Question
A firm has a cost function given by c(y) = 10y2 + 1000. What is its
supply curve? Show your work Clearly
supply curve? Show your work Clearly
Answers
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The supply curve of a firm is the relationship between the quantity of output supplied and the price of the output.
The supply curve can be derived from the cost function by taking the derivative of the cost function with respect to the quantity of output.
c'(y) = 20y
The supply curve is given by:
Price = 20y + 1000
Quantity = y
The supply curve can be derived from the cost function by taking the derivative of the cost function with respect to the quantity of output.
c'(y) = 20y
The supply curve is given by:
Price = 20y + 1000
Quantity = y