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Q1. Assume that the total cost of producing pizzas for the typical firm in a home town is given by: C(q) = 2q + 2q2. Thus, marginal cost is MC = 2 + 4q. (a) Show that the competitive supply behavior of the typical pizza firm is given by: q = P/4 . (b) If there are 60 firms in the industry each acting as a perfect competitor, explain that the market supply curve is in opposite form given by P= 2+Q/15
Q2. Explain why the different definitions are important also explain the different procedures of the money supply?
Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits.
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Rain spoils the strawberry crop, the price raises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week
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