Suppose there are 6000 identical wheat farmers. For each,TC = 50,000 + 20q2, and MC = 40q Market demand isQD= 600,000 - 100P.

a.Determine the market supply curve (Hint: remember that the marginal cost curve above the shut down point is the firm's supply curve. Express the marginal cost curve as P = 40q, isolate q, and then multiply the right hand side by the number of firms)

b.Derive the short-run equilibrium output and price (Hint: for the equilibrium, set Qs = Qd).

c. Determine how much a single firm would produce (Hint: q is obtained by setting P = MC, use the price you obtained in part b).

d. Does the typical firm earn a short-run profit? What are profits or losses?