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A representative firm with long-run total cost given by TC = 11.25 + 20q + 5q 2 operates in a competitive industry where the short-run
A representative firm with long-run total cost given by TC = 11.25 + 20q + 5q2 operates in a competitive industry where the short-run market demandand supply curves are given by QD = 1,400 - 40P and QS = -400 + 20P. If it continues to operate in the long run, its profit maximizing level of output is?
I know the answer is 1.5, but am unsure of how to get to that answer. If I could be helped in showing how to get there, I would appreciate it.
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