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A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 40 + 10Q + 2Q2.
- How much output should the firm produce in the short run?
- What price should the firm charge in the short run?
- What are the firm's short run profits?
- What adjustments should be anticipated in the long run?
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