The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, firm 1's profit is about:

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The demand function for the industry is given as Q = 50 - 2.5P, and the total cost function for an individual firm is TC = 4Q. Given that there are 3 firms in the industry, we first need to find the market equilibrium price and quantity, and then determine the profit for firm 1.1. To find the market equilibrium, we need to set the industry supply equal to the industry demand. However, we are not given a direct supply function, but we can infer that the marginal cost (MC) for a firm, derived from the total cost function TC = 4Q, is constant at 4 (since d(TC)/dQ = 4). This suggests that the supply curve of each firm is perfectly elastic at the price that equals the marginal cost, which is $4.2. Setting the price equal to the marginal cost (P = 4) in the demand equation to find the equilibrium quantity: Q = 50 - 2.5(4) = 50 - 10 = 40.3. Since there are 3 identical firms in the industry, each firm will produce a third of the total market quantity: Q_firm = 40 / 3 ≈ 13.33 units (approximated for simplicity).4. The revenue for firm 1 can be calculated as: Revenue = P * Q = 4 * 13.33 ≈ $53.32.5. The total cost for firm 1 is: TC = 4Q = 4 * 13.33 ≈ $53.32.6. Profit for firm 1 is: Profit = Revenue - Total Cost = $53.32 - $53.32 = $0.Given the choices provided, it seems there might have been a mistake in the calculation or interpretation of the question as it stands. The correct calculation based on the given functions and the assumption of profit-maximizing firms in a competitive market would typically result in a profit calculation as outlined. However, without further information on how price affects individual firm output in this specific market structure or any additional details on market dynamics, the straightforward calculation does not align with the provided options. Therefore, based on the standard approach to such economic problems, none of the options accurately reflect the calculated outcome. It's important to revisit the assumptions or calculations for any potential errors or omissions.

The Demand for the Output of a Multi-Firm Industry Is