Problem 08-02 (algo)A firm sells its product in a perfectly competitive market where other firms charge a price of $100 per unit. The firm estimates its totalcosts as C(Q) = 60 + 12Q+ 2Qt.a. How much output should the firm produce in the short run?unitsb. 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?Entry will occur until economic profits shrink to zero.No firms will enter or exit at these profits.O Exit will occur since these economic profits are too low.

(a) A perfectly competitive firm produces at P=MC in short run. C = 60 + 12Q + 2Q2 Differentiate C…

A firm sells its product in a perfectly competitive market where other firms charge a price of $100 per unit. The firm estimates its total costs as C(Q) = 60 + 12Q+ 2Q?. a. How much output should the firm produce in the short run? units b. What price should the firm charge in the short run? 2$ c. What are the firm's short-run profits? $ d. What adjustments should be anticipated in the long run?

A firm sells its product in a perfectly competitive market where other firms charge a price of $100 per unit. The firm estimates its total costs as C(Q) = 60 + 12Q+ 2Q?. a. How much output should the firm produce in the short run? units b. What price should the firm charge in the short run? 2$ c. What are the firm's short-run profits? $ d. What adjustments should be anticipated in the long run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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