An industry consists of many identical firms, each with the short-run cost function: c(y)=80+25y6y^2 +y^3

1. Why does the minimum of the curve occur at a lower output than the

minimum of the curve?

2. If the market price is $40, and each firm is a price-taker, how much output will

each firm supply?

3. How much profit or loss is each firm making at this price?