Suppose an industry has only one firm with a cost function given by c = 100

+ 9q 2

. The inverse demand curve for the industry is given by p = 20

– q.

(a) Determine the profit-maximizing output level for the monopoly.

(b) Determine the price the firm will charge, and the profit level at the firm.

(c) In the long run, will this firm choose to stay in the industry? Explain.

(d) Will other firms be attracted to the industry? Explain.