A perfectly competitive firm has the following short-run total cost:

Quantity 1c

° $5 1 10 2 B 3 18 4 25, 5 34 6 45

‘Market demand for the firm’s product is given by the following market demand schedule:

Price of jet (millions) | Quantity demanded $12 300 10 500 8 800 1,200 1,800

a. Calculate this firm’s marginal cost and, for all output levels except zero, the firm’s average variable cost and average total cost.

b. There are 100 firms in this industry that all have costs identical to those of this firm. Draw the short-run industry supply curve. In the same diagram, draw the market demand curve.

c. What is the market price, and how much profit will each firm make?