Jessy is the manager of a watch company that is consider under perfectly competitive firm. The cost of producing watches is given by C = 300 + 3Q2, where Q is the level of output and C is total cost.   If the price of watches is P54, how many watches should Jessy produce to maximize profit? Does the firm profit? Should it shut down in the short run? Explain

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Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?