2. The cane industry is composed of a large number of identical rms. Each rm faces...

2. The cane industry is composed of a large number of identical rms. Each rm faces the following short-run total cost (SRTC) function: SRTC = 10 + 20q + 0.5q² where q is the output canes per day. (a) Find the short-run supply curve for each cane maker. (b) If the price of a cane is 30 TL, will the rm make a loss, a prot, or neither? At this price, calculate the output, average cost, marginal revenue, and prot/loss of the rm, and show on a properly-labeled graph.

Expert Solution

Rahul Sunny answered 6 months ago

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