The market for desiccated gadgets in Monteregian is perfectly competitive.

All gadget producers face costs (per week) described by

In the SHORT RUN (no existing firms exit the industry; no new firms enter the industry), the number of firms producing and selling gadgets is equal to the number determined in Question 2. The number of firms is fixed in SHORT RUN.

The demand for desiccated gadgets (per week) decreases (gadgets become less fashionable). The new demand is given by Q_D(P) = 400 - P

At theSHORT RUN equilibrium market price, what is the profit earned by EACH (identical) profit-maximizing gadget producer?

Question 5 options:

1)Short Run Profit < -$250 (Short RunLoss> $250)

2)Short Run Profit < $0 but Short Run Profit > - $250 (There is Short RunLoss< $250)

3)Short Run Profit = $0 (No Short Run Profit, No Short Run Loss)

4)Short Run Profit > $0 but Short Run Profit < $250 (There is Short RunProfit< $250)

5)Short Run Profit > $250