Suppose a perfectly competitive firm's total cost curve is described as C (q) = 1, 345.60 + 20 9. Assume that the short-run cost curve given is the one all firms use in the long-run because the...

Extracted text: Suppose a perfectly competitive firm's total cost curve is described as C (q) = 1, 345.60 + 20 9. Assume that the short-run cost curve given is the one all firms use in the long-run because the corresponding short- run AC curve is tangent to the long-run AC curve at the minimum point of the LRAC. Part (a): Write out the individual firm's SR and LR supply curve. Part (b): Suppose the firm develops new technology that lowers the total cost of production by 50%. If the firm decides to keep the technology, calculate the firm's economic rents. If necessary, round output down to the nearest integer and prices to two decimal places.