Firm W is a perfectly competitive firm operating in the paper clip industry. Firm W has a total cost function as follows: TC = 20 + 4q + 2q.2 The paper clip industry is characterized by the following demand and supply equations: Qd = 80 - 1P Qs = 2P +8 a. What is the firm's profit maximizing output, price and profit? b. Derive the firm's short run supply curve.
