A firm sells its product in a perfectly competitive market where other firms charge a price...

 

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A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total costs as CQ)=60+14Q+2Q² a. How much output should the firm produce in the short run? units 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? O Entry will occur until economic profits shrink to zero. O Exit will occur since these economic profits are too low, No firms will enter or exit at these profits. A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total costs as CQ)=60+14Q+2Q² a. How much output should the firm produce in the short run? units 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? O Entry will occur until economic profits shrink to zero. O Exit will occur since these economic profits are too low, No firms will enter or exit at these profits.

Answer rating: 100% (QA)

a The firm should produce 80 units of output ... View the full answer