The chair-making industry currently consists of the 90 producers, all of whom operate with the identical short-run total cost curve STC(Q)=500+3Q2, where the Q is the annual output of a firm. Only $200 of each firm's fixed cost is sunk. The market demand curve for lamps is D(P)=2880-P, where P is the market price.
1. Calculate the marginal cost curve for each firm?
2. Calculate the individual firm's shutdown price
3. Determine the individual firm's short-run supply curve?
4. Determine the short-run market supply curve?
5. Calculate the short-run equilibrium price, total market quantity, and quantity per firm in this industry.