Computers is given by Q = 800 2P, and its weekly cost of producing computers is C(Q) = 1,200 + 2Q2.

If other firms in the industry sell PCs at $300, what price and quantity of computers should you produce to maximize your firms profits?

Price: $

Quantity: computers

What long-run adjustments should you anticipate?

multiple choice

• Exit by other firms along with decreased profits.

• Entry by other firms along with increased profits.

• Entry by other firms, reducing your profits.

• Exit by other firms, increasing your profits.