Question: Consider a competitive firm whose cost is given by C = 4 + 4Q + Q 2 , and its inverse demand function is given

Consider a competitive firm whose cost is given by

C = 4 + 4Q + Q2, and its inverse demand function is given by P = 9 - Q/4.

The product sells at $30 per unit.

(1) Find the optimal price and quantity of output in the short run.

(2) What long-run adjustments should you expect? Explain

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