Consider a Popsicle stand

Consider a Popsicle stand

Consider a Popsicle stand that sells in a perfectly competitive market.The Popsicle stand has variable costs related to labor and materials of2q^2-(1/2q). It has mortgage on the stand that costs $5. Assume the marketis illiquid so that the stand could not sell its assets to another buyer. Ifit chooses to operate, it must pay $3 in electricity to keep the Popsiclesfrozen throughout the day.(a) What are the stand?s non-sunk ?xed costs? What are the stand?ssunk ?xed costs?(b) What is the supply curve for the Popsicle stand?(c) How many Popsicles will the stand produce if the price is $7.50?

%d bloggers like this: