Consider the problem of a competitive firm which has fixed costs of $1000, semi-fixed-costs of $1000, and variable costs given by q^2.

What is the maximum market price at which the firm decides to supply zero?

nvmd got it.

mind share the answer?

I think that the answer is 2*sqrt(1000)

To find the maximum market price at which the firm decides to supply zero, we need to determine the firm's supply function and find the price at which the quantity supplied is zero.

The supply function represents the relationship between the price of a product and the quantity the firm is willing to supply at that price. In this case, the firm's supply function can be defined as:

Quantity supplied = Fixed costs + Semi-fixed costs + Variable costs

Quantity supplied = $1000 + $1000 + q^2

To find the price at which the firm decides to supply zero, we need to set the quantity supplied equal to zero and solve for q:

0 = $1000 + $1000 + q^2

Rearranging the equation:

q^2 = -($1000 + $1000)

q^2 = -$2000

Since it is not possible to take the square root of a negative number in the context of real numbers, we conclude that the firm will not supply zero at any positive market price. Therefore, there is no maximum market price at which the firm decides to supply zero.