Question: A perfectly competitive firm has a total cost function equal to: C(Q) = 20,000 + 450Q - 4Q2+ 0.01Q3 If the market price for the

A perfectly competitive firm has a total cost function equal to:

C(Q) = 20,000 + 450Q - 4Q2+ 0.01Q3

If the market price for the firm is $142 and the firm is producing 220 units, what are their profits/losses?

What is the minimum market price the firm needs in order to produce in the short-run?

Suppose you are a manager of perfectly competitive firm and at your optimal / profit-maximizingQ,ATC = $20andAVC = $15.The price in the market isP = $18and you are producing 400 units of Q (this is your optimal / profit-maximizing level).

What is your profit / loss from producing 400 units?

What is your profit / loss if you shut down and produced nothing (Q = 0)?

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