QuestionConsider a competitive firm whose cost is given by

C = 60 - 4Q + 6Q².

The product sells at $20 per unit.

(1) Find the optimal quantity of output in the short run.

(2) Evaluate the profitability of the optimal quantity of output that you found in (1).If it is a loss, make a decision whether or not the firm should shut-down.Provide a reason for your decision.

(3) What long-run adjustments should you expect?Explain.