View the step-by-step solution to:


Consider the general supply function:

Qs = 1,000 + 20P - 9PI + 25F


Qs = quantity supplied, P = price of the commodity, PI = price of a key input in the production process, and F = number of firms producing the commodity.

Derive the inverse of the supply function when PI = $480 and F = 60. Then using the inverse supply function, what is the supply price for 40,000 units of the commodity?

a. $91

b. $111

c. $1,000

d. $2,091

Top Answer

Inverse supply we get by simply writing supply function... View the full answer


Decomposing -
General Supply function
Qs = 1,000 + 20 p - 9P, +25F
Wherel , P1 = $480
F = 60
put these into the above equation , we get
Q8 = 1,000+ 20 p - 9(480) +25(60)
= 1000 + 20 P - 4320 +...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question