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Q. The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC (Q)=16+Q^2, where Q is the annual firm o/p. 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 cost .
a) Assuming which all of each firm's $16 fixed cost is sunk, Illustrate what is a firm's short-run supply curve?
b) Illustrate what is the short-run market supply curve?
c) Find out the short-run equilibrium cost and quantity in this industry.
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