The supply curve is $p = 0.1 q - 10$ . The cost of production at the efficient scale is Rs 10. How many units would the firm supply at a market price of Rs 8?

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Solution

The correct option is D
0

If the price is less than the minimum of the ATC curve, the firm doesn't produce or supply. Here, the price is Rs 10 and the minimum of SAC is Rs 8. Hence, supply is zero.

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The supply curve is p=0.1q−10 . The cost of production at the efficient scale is Rs 10. How many units would the firm supply at a market price of Rs 8?

The correct option is D 0 If the price is less than the minimum of the ATC curve, the firm doesn't produce or supply. Here, the price is Rs 10 and the minimum of SAC is Rs 8. Hence, supply is zero.

The supply curve is $p = 0.1 q - 10$ . The cost of production at the efficient scale is Rs 10. How many units would the firm supply at a market price of Rs 8?

The correct option is D
0

If the price is less than the minimum of the ATC curve, the firm doesn't produce or supply. Here, the price is Rs 10 and the minimum of SAC is Rs 8. Hence, supply is zero.