Question
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total costs as TC=200+10q+2.5q2 and its marginal cost is MC=10+5q.
1 Determine the firm's short-run profits?Show your steps!
2 What are the firm's long-run profits?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
