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ChoppinAxe is a little Swedish firm that produces wood planks and operates in a perfectly competitive market. Each firm in the market has the following total cost function:
where Qi shows the tons of wood planks each firm i produces. ChoppinAxe and all other firms sell their products to only one buyer, IPEA, an international furniture company. IPEA's total demand for wood planks can be described as follows:
where p is the price for a ton of wood planks. You may suppose that the market is in equilibrium.
a) Find ChoppinAxe's supply curve.
b) How many tons of wood planks will ChoppinAxe sell to IPEA? At which price?
c) Repeat sub questions (a) and (b) for KindCutters, another wood planks producer show in the market.
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