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Bob’s Whole Catfish is a southern Alabama farm that operates in the perfectly competitive catfish farming industry. Bob’s short-run total cost curve is STC(Q)=400+2Q+0.5Q2 where Q is the number of catfish harvest per month. All of the fixed costs are sunk.
(a) What is the equation for the short-run marginal cost (SMC)?
(b) What is the equation for the average variable cost (AVC)?
(c) What is the minimum level of average variable costs?
(d) What is Bob’s short-run supply curve?
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