The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curves �(�) = 16 + �), where q is the annual output of a firm. The market demand for bolts is �- = 110 − � (assume that the industry is perfectly competitive). a. What is the 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. d. What is each firm’s profit? e. What is the aggregate producer surplus?

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?