loader  Loading... Please wait...

Question(s) / Instruction(s):

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?

Find Similar Answers by Subject

Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)

Expert's Answer
Download Solution:

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

Reach Us