Suppose that there are 10 identical firms in a perfectly competitive market. Each firm has a total cost function of TC = 560 + 0.25q2, where q is a firm’s output. The market demand function is QD = 480 – 4P, where P is the price per unit of output and QD is total market demand

a) Derive the market direct supply equation (QS = f(P))

b) Calculate the short run equilibrium market price (P*) and total quantity (Q*) in the market

c) Determine the profit-maximizing quantity (q*) that each firm would produce

d) Determine the profit, the average total cost (ATC), and the average variable cost (AVC) of the firm at its profit-maximizing quantity (q*)