What is the short-run market supply curve

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The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC(Q) = 16 + Q² , where Q is the annual output of a firm. The corresponding short-run marginal cost curve is SMC(Q) = 2Q. The market demand curve for bolts is D(P) = 110 - P, where P is the market price.

a) Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?

b) What is the short-run market supply curve?

c) Determine the short-run equilibrium price and quantity in this industry.

Reference no: EM131254008

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