9.12. The oil drilling industry consists of 60 producers, all of whom have an identical short-run total cost curve, STC(Q) ! 64 " 2Q2

, where Q is the monthly output of a firm and $64 is the monthly fixed cost. The corresponding short-run marginal cost curve is SMC(Q) ! 4Q.

Assume that $32 of the firm’s monthly $64 fixed cost can be avoided if the firm produces zero output in a month.

The market demand curve for oil drilling services is D(P) ! 400 # 5P, where D(P) is monthly demand at price P. Find the market supply curve in this market, and determine the short-run equilibrium price.