The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by ST C = 0.5q 2 + 10q + 5 and short-run marginal costs given by SMC = q + 10 where q is the output of snuffboxes per day. [Ref: BB 352-356, 374-381, Notes L11, L12]

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

b) Suppose the demand for total snuffbox production is given by Q d = 1, 100 50P. What is the equilibrium in this marketplace? What is each firm's total short-run profit?

c) Graph the market equilibrium and compute producer and total surplus in this case