The minimum quantity that a firm supply is 1000, at a price of Rs 20. The minimum average variable cost is Rs ___ .
The minimum quantity supplied corresponds to the minimum point of the average variable cost. In this case, it corresponds to Rs 20.
If the price is Rs 10, quantity supplied is 20 and the average total cost is Rs 3, then calculate profit.
At the market price of Rs 10, a firm supplies 4 units of output. The market price increases to Rs 30. The price elasticity of the firm’s supply is 1.25. What quantity will the firm supply at the new price?