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  3. consider a competitive industry comprised of 60 producers all of...

Question: consider a competitive industry comprised of 60 producers all of...

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Consider a competitive industry comprised of 60 producers, all of whom have an identical short run total cost curve: SRTC(q) 642q where q is the monthly output of a firm and $64 is the monthly fixed cost. Assume that $32 of the firms monthly $64 fixed cost can be avoided if the firm produces zero output in a month. The market demand for coal production is D(P) 400-5P, where D(P) is monthly demand at price P Derive the short run market supply curve in this market and determine the short-run equilibrium price

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