Suppose There are 100 identical firms in the perfectly competitive note card industry. Each firm has a short-run total cost curve of the form:

= 1/3003 + 0.22 + 4 + 10

and marginal cost is given by

= 0.01 2 + 0.4 + 4

a) Calculate the firm's short run supply curve with q (the number of crates of note cards) as a function of market price (P).

b) Calculate the industry supply curve for the 100 firms in this industry.

c) Suppose market demand is given by = 200 + 8,000. What will the short-run equilibrium price-quantity combination?

d) Suppose everyone starts writing more research papers and the new market demand is given by = 200 + 10,000. What is the new short-run price-quantity equilibrium? How much profit does each firm make?