A firm sells its product in a perfectly competitive market where other firms charge a price of $95 per unit. The firm's total cost are TC-20+5Q+Q². 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 do you expect to happen in the long run?

A firm sells its product in a perfectly competitive market where other firms charge a price of $95 per unit. The firm's total cost are TC-20+5Q+Q². 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 do you expect to happen in the long run?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 12SQ

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Write down the attributes of a perfectly competitive market (200 words).