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(Solution Library) Pizza AM is a famous pizzeria in Milan. Assume that it has the following short-run cost function: C(q)=50+q^2 Derive analytically pizza AM’s

Question:

Pizza AM is a famous pizzeria in Milan. Assume that it has the following short-run cost function:

\[C\left( q \right)=50+{{q}^{2}}\]
  1. Derive analytically pizza AM’s marginal (MC), average variable (AVC) and average total (ATC) cost.
  2. Draw on a carefully labeled graph pizza AM’s MC, AVC and ATC previously found.
  3. Derive analytically and show in a graph the short-run supply curve of the firm.
  4. Suppose that in Milan there are n = 100 pizzeria, all with the same short-run cost function of Pizza AM. Suppose that the market demand function is
\[{{Q}^{D}}=3600-50p\]

Find the market equilibrium and the quantity produced in equilibrium by the individual pizzeria.

Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document


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