Econ Q:

3. (15 points) Suppose a competitive industry has 200 identical firms in the short run, each having short-run total 2 costs given by STC = q? + 10g + 5. (1) What is the industry's short-run supply curve? (2) Suppose the total market demand curve is given by @ = 4000 100P. Find each firm's total profits and producer surplus in the short-run equilibrium. (3) Suppose the government provides firms in this industry a subsidy in the amount of $3 per unit sold. Find the total subsidy the government will give