Microeconomic Theory 11th Edition by Walter Nicholson,Christopher Snyder

Exercise 1

Suppose there are 100 identical firms in a perfectly competitive industry. Each firm has a short-run total cost function of the form

a. Calculate the firm's short-run supply curve with q as a function of market price ( P ).
b. On the assumption that there are no interaction effects among costs of the firms in the industry, calculate the short-run industry supply curve.
c. Suppose market demand is given by Q=-200P+ 8,000. What will be the short-run equilibrium price-quantity combination?