1. Suppose there are 1000 identical wheat farmersin a given market. For each, TC = 90,000 + q²and MC = 2q. Market demand is Q = 600,000 - 100p and market supply isQ = 500P.

Which of the following describes this industry'sshort-runequilibrium P (price), q (firm-level quantity), and Q (market quantity)?

a. In the short-run equilibrium, P =$600 , q = 300 and Q = 540,000.

b. In the short-run equilibrium, P =$1,000 , q = 500 and Q = 500,000.

c. In the short-run equilibrium, P =$1,000 , q = 1,000 and Q = 600,000.

d. It is not possible to derive the short-run equilibrium without information on firm-level demand curves.