The industry demand function for bulk plastics is represented by the following equation: P = 800 - 20Q where Q represents millions of pounds of plastic. The total cost function for the industry, exclusive of a required return on invested capital, is TC = 300 + 500Q + 10Q2 If this industry acts like a monopolist in the determination of price and output, the profit-maximizing level of price and output will be $700 and 5 million respectively. The total profit at this price-output level is $450 million. Assume that this industry is composed of many (500) small firms, such that the demand function facing any individual firm is P = $620. Under these conditions, the profit-maximizing level of price and (total industry) output will be $620 and 6 million respectively. (Hint: The industry's total cost function remains unchanged.) The total profit at this price-output level is[ $60 million. Because of the risk of this industry, investors require a 15 percent rate of return on investment. Total industry investment amounts to $2 billion. If the monopoly solution prevails, the total industry profit is 5 million. If the competitive solution most accurately describes the industry, which of the following is most likely to happen? O Some firms will exit the market. O New firms will enter the market. O Number of firms remains unchanged. Suppose the Clean Water Coalition proposes pollution control standards for the industry that would change the industry cost curve to the following: IC = 400 + 560Q + 10Q2 What is the impact of this change on price, output, and total profits under the monopoly solution? Increase Decrease No change Price O O O Output O O O Total Profits