Find the stands non-sunk xed costs determine the stands

Reference no: EM13393647

Consider a Popsicle stand that sells in a perfectly competitive market. The Popsicle stand has variable costs related to labor and materials of 2q^2-1/2q It has mortgage on the stand that costs $5. Assume the market is illiquid so that the stand could not sell its assets to another buyer. If it chooses to operate, it must pay $3 in electricity to keep the Popsicles frozen throughout the day.

(a) What are the stand's non-sunk ?xed costs? What are the stand's sunk ?xed costs?

(b) What is the supply curve for the Popsicle stand?

Reference no: EM13393647

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