Suppose that there are 80 firms in a market, each with the following cost function: C(q) = 100 + 4q^2

3.1 Derive the MC, AVC, and AC curves. Show them in a graph and show the short-run market supply curve.

3.2 Suppose the market demand is QD = 1280 - 30p

Find the equilibrium market quantity and price. Draw the market and firm graph next to each other and calculate and show on it the quantity produced by the firm.

3.3 How much profit is each firm making? What will happen in the long run? Entry or exit of firms? Calculate the number of firm in the long-run equilibrium.