A firm sells its product in a perfectly competitive market where other firms charge a price of
Question:
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm??s total costs are C(Q) = 40 + 8Q + 2Q2.a. How much output should the firm produce in the short run?b. What price should the firm charge in the short run?c. What are the firm??s short-run profits?d. What adjustments should be anticipated in the longrun?
Transcribed Image Text:
$48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 MC 4TC Df MR AVC AFC 6. Quantity 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
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a Set P MC to get 80 8 4Q Solve for Q to get Q 18 units b ...View the full answer
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Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
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