There are two firms (producers) in the market and they are price takers.

Total Cost Function for firm 1: 0.65(Q1)^2 + 22Q1 + 120

Total Cost Function for firm 2: 0.82(Q2)^2 + 18Q2 + 160

Each firm has a minimum capacity of 0 but no maximum capacity.

The inverse demand curve for the market is: P = 475 - 0.6Q

a) What is the inverse supply curve for the entire market?

b) When calculating this curve, make sure you account for the minimum capacity of the firms. If

the price is too low, firms produce nothing, not a negative quantity. (note that you may have a

non-smooth curve). Draw it.

c) What is the market clearing price for this market? What is the market quantity?

d) Calculate the Consumer Surplus (CS), the Producer Surplus (PS), and the Social Welfare (SW).