A Perfect Competition Question

An industry has 100 identical firms in an industry that behaves like a perfect competition (so

all firms are price takers). Each firm has a short-run total cost curve of

C=0.2 + 5q + 20

a. Calculate the short run supply curve for a representative firm as a function of price (P).

b. Calculate the industry short run supply curve.

c. Suppose the market demand is given by Q=-200P+6000. What is the short run equilibrium

price and quantity?

d. What is the profit a typical firm will make?

e. Since all firms act like price takers, what is the long run equilibrium price in this market?

Explain how you arrived at this answer.