The handmade snuff box industry is composed of 100 identical firms,each having short-run total costs given by

STC = 0.5q^2 + 10q + 5

where q is the output of snuff boxes per day

a) What is the short run supply curve for each snuff box maker? What is the short-run supply curve for the market as a whole?

b) Suppose the demand for total snuff box production is given by Q = 1100 - 50P

What will be the equilibrium in this marketplace? What will each firm's total short-run profits be?

c) Graph the market equilibrium and compute total short-run producer surplus in this case.

d) Show that the total producer surplus you calculated in part c) is equal to total industry profits plus industry short-run fixed costs.