What is the new short run price-quantity equilibrium

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Reference no: EM13232413

Suppose there are 100 indentical firms in the perfectly competitive notecard industry. Each firm has a short run total cost curve of the form

STC= 1/300 q3 +?0.2q?^2+4q+10

and marginal cost is given by
SMC = .01q^2 + .4q + 4

a. calculate the firms short run supply curve with q (the number of crates of notecards) as a function of market price (P)

b. Calculate the industry supply curve for the 100 firms in this industry.

c. Suppose market demand is given by Q= -200P + 8,000. What will be the short run equilibrium price quantity combination.

d. Suppose everyone starts writing more research papers and the new market demand is given by Q= -200p +10,000. What is the new short run price-quantity equilibrium.

Reference no: EM13232413

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