Suppose that there are 1,000 firms in a perfectly competitive industry, each with a short-run total cost curve given by TC = 800 + 8Q + 0.1Q² and marginal cost curve given by MC = 8 + 0.2Q.
a. What is the profit-maximizing output level for each firm at a market price of $20?
b. How much profit does each firm make at a market price of $20?
c. Explain whether the industry will expand or contract in the long run.

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The Answer of Suppose that there are 1,000 firms in a perfectly competitive industry, each with a short-run total cost curve given by TC = 800 + 8Q + 0.1Q² and marginal cost curve given by MC = 8 + 0.2Q. a. What is the profit-maximizing output level for each firm at a market price of $20? b. How much profit does each firm make at a market price of $20? c. Explain whether the industry will expand or contract in the long run.

Suppose That There Are 1,000 Firms in a Perfectly Competitive