1. a. Assume that the hops industry is perfectly competitive, with 20 firms. The market demand for hops is described by a daily linear demand function P=88-0.05q, where q is some fixed quantity of hops. Each producer has the same daily production costs, described by TC=266+12q+0.592. Industry supply is P=12- 0.05q. What is the industry price for hops? What is the industry quantity? What is the profit- maximizing quantity of hops for each firm? b. Calculate the profit of the typical firm. Show two graphs, with the hop industry graph on the right, and the typical firm graph on the left. Depict the situation fully, including information derived in parts a-b. Shade in the profit box. d. Given the short-run conditions, what events would we expect in the long-run for this particular industry? Describe. What is the long-run price of hops? C