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Suppose Silky Smoothies is a monopolistically competitive firm with a total cost that can be expressed as TC(q)=41q34q2+45q. Suppose the firm faces a demand of
Suppose Silky Smoothies is a monopolistically competitive firm with a total cost that can be expressed as TC(q)=41q34q2+45q. Suppose the firm faces a demand of P=5023q. A. (5 points) Find the marginal revenue, marginal cost, and average total cost for Silky Smoothies. B. (5 points) Find Silky Smoothies' short run profit maximizing price and quantity. What are the firm's profits? C. (5 points) What will the long-run quantity and price for Silky Smoothies be? What will the firm's profits be in the long run? D. (5 points) Are there any inefficiencies present from Silky Smoothies? If so, calculate this inefficiency. If not, explain why this type of firm does not introduce inefficiencies
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