Consider the following firm competing in a perfectly competitive market. The market price is $9. This firm is currently producing 1000 units.
- What is the marginal profit of the 1000th unit? (Show work)
- How much are total fixed costs? (Show work)
- What are profits when the firm produces 1000? (Show work)
- Is this firm profit maximizing? (If "yes" shade in the profit; If "no" label the profit maximizing output Q* and do not shade in profit)
- Is this industry in long-run equilibrium? If yes, explain how you know. If not, explain precisely how the industry would transition to LR equilibrium.