Consider a competitive market for electricity production in which some firms are polluters.

Firm A (coal burning):

C(xA)=(1/40)(xA^2)

i) Assume the market operates without any recognition of environmental costs. Find the supply function of each price-taking firm.

Assume the market demand for the commodity is given by

X(p)=10000p

1. ii) Find the competitive market equilibrium price and quantity using the firm supply functions in i) and the market demand above.
2. iii)How much do each of the firms supply?