Suppose there are two firms in a perfectly competitive market. One firm's costs are given by 1 = 1200 + 0.5 ^2/1 , and the other firm's costs are 2 = 1200 + 0.5 ^2/2 .

- If marginal costs are = / , where = 1, 2; derive each firm's supply curve (do not worry about the shutdown price at the moment).

- Suppose 1 = 6 and 2 = 24. Which firm will produce more? Derive the market supply curve.

- Suppose market demand is given by = 930 , where is the total market quantity. What are the equilibrium market price and quantity?