The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC(Q) = 16 + Q2, where Q is the annual output of a firm. The corresponding short-run marginal cost curve is SMC(Q) = 2Q. The market demand curve for bolts is D(P) = 110 − P, where P is the market price.
a) Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?
b) What is the short-run market supply curve?
c) Determine the short-run equilibrium price and quantity in this industry.