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The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curves �(�) = 16 + �), where q is the annual output of a firm. The market demand for bolts is �- = 110 − � (assume that the industry is perfectly competitive). a. What is the 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. d. What is each firm’s profit? e. What is the aggregate producer surplus?

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temmydbrain

Answer:

Check the explanation

Explanation:

Suppose that there are PO producers. All have an identical short run total cost curves  [tex]C(q) = 16 + F^{2}[/tex]

Here, q is the annual output of a firm

firm's short run supply curve is the marginal cost above the average variable cost.

Marginal cost is the change in total cost due to change in quantity.

the perfect competitive market for profit maximixing output, price is equal to marginal cost.

kindly check the below attached images for further explanation.

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