Question
A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm estimates its total
A firm sells its product in a perfectly competitive market where other firms charge a price of $70 per unit. The firm estimates its total costs asC(Q) = 40 + 10Q + 2Q2.
a. How much output should the firm produce in the short run?
units
b. What price should the firm charge in the short run?
c. What are the firm's short-run profits?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
