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Assume Knappy Knickers has the following cost equations
C(Q)=2Q^2+2Q+400
MC(Q)=4Q+2
A. Determine the firm’s supply functions when all fixed costs are avoidable.
B. Determine the firm’s supply functions when all fixed costs are sunk.
C. Determine the firm’s supply function when only $200 of the firm’s fixed costs are avoidable.
D. Draw a graph showing the firms average total cost, average variable cost, and marginal cost curves from Part C. Clearly label the location of the firm’s supply curve from Part C.
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