Your firm is one of 100 identical firms operating in the short-run in a perfectly competitive market. Your total cost function (short-run and long-run) is C = 500 + 20 q + q2, and your marginal cost function is MC = 20 + 2q. The (short-run and long-run) market demand curve is given by Q = 4,500 - 5P.
a. Find the supply curve for your firm. Then, find the short-run market supply curve. Show work.
b. Find equilibrium price, P*, and quantity, Q*, in the market in the short-run. Show work.
c. Find your firm's total revenue, total cost, and profit in the short-run. Show work.
d. Find the minimum efficient scale (MES) for your firm. Show work. Find the long-run equilibrium price in the market after entry or exit has occurred. Show work.