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3. A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm's total costs are C (Q)=40+8Q+2Q2 And marginal costs are MC (Q) =8+4Q a) How much output should the firm produce in the short run? b) What price should the firm charge in the short run? c) What are the firm's short-run profits? d) What adjustments should be anticipated in the long run? 4. You are the manager of a monopolistically competitive firm, and your demand function is given by: Q=20-2P, MR=10-Q The cost function is given by: C (Q)=104-14Q+Q2 MC=-14+2Q a) Determine the profit maximizing price and level of production. b) Calculate your firm's profits c) What long-run adjustments should you expect?

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