The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost curve of SSSSSSSS = 6qq + 10qq2 where q is the number of bushels of sweet potatoes per month in thousands. Answer each of the questions that follows. a) Do these firms have any fixed costs? Explain. b) Find each firm’s short run AVC and short run MC. c) What is the shutdown point for these firms? In other words, at what price will the firms choose not to produce? d) Find the short run supply curve for these firms. e) Find the market supply curve for sweet potatoes.

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The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total cost
curve of SSSSSSSS = 6qq + 10qq2 where q is the number of bushels of sweet potatoes per month in
thousands. Answer each of the questions that follows.
a) Do these firms have any fixed costs? Explain.
b) Find each firm’s short run AVC and short run MC.
c) What is the shutdown point for these firms? In other words, at what price will the firms
choose not to produce?
d) Find the short run supply curve for these firms.
e) Find the market supply curve for sweet potatoes.

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