2. Consider a competitive market where there are two types of firms, Type A and Type B, with total cost functions TCA(@) =2+ 4q + 2g TC (4) = 3+9+5 %3D (a) Derive the short-run supply curve for each firm type. (b) What is the short-run market supply, if there are 8 Type A firms, and 6 Type B firms? (c) What is total quantity produced when p-5? (d) How does your answer at (c) change if we consider long run supply rather than short run? Here, assume again that pa5 and that there are 8 Type A firms and 6 Type B firms.

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