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A price-taking firm has an average total cost (ATC) function: ATC = 44 - 8q + 1.60q 2 P q = $40.25 a. What level

A price-taking firm has an average total cost (ATC) function: ATC = 44 - 8q + 1.60q²

P_q= $40.25

a. What level of output will maximize profit? b. At the current price, is the market in the long-run equilibrium? Explain your response and indicate what will happen in the market from existing competitors and potential competitors.

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