2. There are 100 firms in the widget industry, each with the short run cost function

() =

1

2

2 + 5 + 200,

where q is its output.

(a) Find each firm's short run supply curve.

(b) Find the market supply curve.

(c) If the market demand curve is

= 3500 100,

find the short run equilibrium price and market quantity. How much will each firm

produce? How much profit will each firm make?(d) If each firm's long run cost function is

() = { 0 = 0 1

2 2 + 5 + 200 > 0

find the long run market supply curve and market equilibrium. How many firms will

operate in the market in the long run?