Determining short run supply function

Reference no: EM1367994

The Magazine Delivery Company is a typical firm in the perfectly competitive magazine delivery business. The company delivers magazines and stocks magazine racks at convenience stores located throughout the state of Kentucky. Marginal costs of service are described by the relation:

MC = $5 + $0.4Q

where Q is racks of magazines delivered and serviced per week.

A. Derive the firm's supply curve, expressing quantity as a function of price.

B. Derive the market supply curve if the company is one of 200 competitors.

C. Calculate market supply per week at a market price of $25 per rack delivered and serviced.

Reference no: EM1367994

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