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(All Steps) The bolt industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC(Q)=16+Q^2, where

Question: The bolt industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve \(\mathrm{STC}(\mathrm{Q})=16+Q^{2}\), where \(\mathrm{Q}\) is the annual output of a firm. The corresponding short-run marginal cost curve is \(\mathrm{SMC}(\mathrm{Q})=2 \mathrm{Q}\). The market demand curve for bolts is \(D(P)=110-P\), where \(\mathrm{P}\) is the market price.

  1. Assuming that all of each firm's $16 fixed cost is sunk, what is a firm's short-run supply curve?
  2. What is the short-run market supply curve?
  3. Determine the short-run equilibrium price and quantity in this industry.

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