The following total cost (TC) relation holds in both short run and long run for a monopolistically competitive firm

TC=100+3Q+0.03Q^2

Where Q is the quantity of output

TC function includes a risk adjusted normal rate of return on the firm's investment

In the short run, total revenue (TR) relation for this monopolistically competitive firm is given by:

TR=11Q-0.01Q^2

Due to a high degree of product differentiation maintained by the firm, the firm demand curve in the long run is a parallel shift of its short-run demand curve.

To maximise total profit in the short run, the firm should produce ___________ units of output ; To maximise total profit in the long run, the firm should produce _________ units of output.

a.50;100

b. 100;50

c.100;58

d. 50;58