A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs asC(Q) = 70 + 14Q + 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?

$

d. What adjustments should be anticipated in the long run?

multiple choice

• Entry will occur until economic profits shrink to zero.
• No firms will enter or exit at these profits.
• Exit will occur since these economic profits are too low.