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Question - Ivan owns a small boat and catches shrimps off the Redondo Beach. His weekly cost function is TC(q) = 10 + 5q + q^2. He sells shrimps to the local wholesaler at the market price p (in dollars).
(a) Find Ivan's short-run supply curve for shrimps.
(b) Find Ivan's long-run supply curve for shrimps.
(c) Find Ivan's shutdown price and Ivan's breakeven price (the price at which profit equals zero).
(d) Suppose the market price is exist10, calculate his profit. What will Ivan do in the long run? Explain.
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