Hwo to you derive a perfectly competetive firms short run supply curve?
Answer:
It's the marginal cost curve above the intersection with the average variable cost curve. However, in this case, MC is always greater than AVC at any q>0 so it is the entire MC curve at any q greater than/equal to 0.
MC = 10q + 10
AVC = 5q + 10
The industry supply curve is the summation of all the individual firm's supply curve.
So, the individual firm's supply curve is a straight line with y-intercept at 10 and a slope of 10.
yes
it's equal to marginal cost curve.
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