Suppose the market for flat-screen computer monitors is perfectly competitive. In the short run there are 30 firms in the market. Each firm's short-run marginal cost is SMC = 10q,where q is the firm's output in number of monitors produced. Each firm that produces q > 0 has an average variable cost given by AVC = 80/q +5q. Each firm has a fixed cost FC = 95.

(a) Show that a firm's shutdown price is equal to $40. Show your work.

(b) Provide the equation relating the individual firm's quantity supplied (q) to the market price.

(c) Now suppose the demand for flat-screen monitors is given by QD = 2502P. Recall that there are 30 firms in the market.

i. Provide the equation relating the quantity supplied in the whole market (QS) to the market price (P).

ii. Illustrate the market in short-run equilibrium on a supply and demand graph. Also show consumer and producer surplus on your graph (make sure everything is clearly labeled in your diagram). Calculate the equilibrium price, quantity and consumer's surplus.