The supply curve is p=0.1q-10. The cost of production at the efficient scale is Rs 10. The quantity supplied at a price of Rs 15 is .
A
0 units
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B
125 units
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C
250 units
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D
500 units
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Solution
The correct option is C 250 units Price = Rs 15 Minimum value of SAC = Rs 10 Since P > SAC >AVC, the firm would produce at a market price of Rs 15. Substituting p=15 in the equation, we get 15=0.1q−10q=250.1=250