A firm sells output q, the short-run total cost is STC=200+20q+q². The non-sunk fixed cost is 100. 1. What is the shut-down price in short-run? 2. What is the short-run supply function for this firm? 3. Now there are 200 identical firms, the market demand curve is Qd=8000- 100P. What is the market equilibrium price under perfectly competitive market? What is the output for each firm? 4. Now the market demand curve is Qd=4000-100P. What will happen?

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