Question: Consider a competitive firm whose cost is given by C = 60 - 4Q + 6Q 2 . The product sells at $14 per unit.

Consider a competitive firm whose cost is given by

C = 60 - 4Q + 6Q².

The product sells at $14 per unit.

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

(2) Evaluate the profitability of the optimal quantity of output that you found in (1).If it is a loss, make a decision whether or not the firm should shut-down.Provide a reason for your decision.

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Consider a competitive firm whose cost is given by C = 60 - 4Q + 6Q 2 . The product sells at $20 per unit. (1) Find the optimal quantity of output in the short run. (2) Evaluate the profitability of...

Question 1. (10 points)Which characteristics make a monopolistically competitive firm competitive? Question 2. (10 points)Why P = MC cannot be a condition for an optimal quantity of output for a...

Question Consider a competitive firm whose cost is given by C = 60 - 4Q + 6Q 2 . The product sells at $20 per unit. (1) Find the optimal quantity of output in the short run. (2) Evaluate the...

Consider a competitive firm whose cost is given by C = 4 + 4Q + Q 2 , 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...

Consider a competitive firm whose cost is given by C = 60 + 2Q + 4Q 2 . The product sells at $26 per unit. (1) Find the optimal quantity of output in the short run. (2) Evaluate the profitability of...

plz how do you carry on this 1. A rm has produced E 3} 2 units of {divisible} output at cost c. The rm can sell all or part of its output now, in period 1, or it can wait to sell it in period 2....

Q1) Sales are a function of advertising in newspapers and magazines (X, Y). 05 S = XY2 Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for...

25. Market demand is given as QD = 75 - 2P. Market supply is given as QS = 2P + 15. Each identical firm has MC = 3Q and ATC = 2Q. What is a firm's profit? A. $0.00 B. $18.75 C. $25.00 D. $50.00 26....

When comparing various divisions within a company, describe what problems can arise from evaluating divisions that have different accounting methods, as described in Chapter 11 of your text. Cite...

MBA 280 Fall 2017 Inventory Management Time Frame: Class 5 - Class 6 References: Operations Management Reading: Managing Inventory Simulation: Root Beer Game Played in Class 6, Oct 5th, Check Saclink...

Doing business in emerging markets involves strategies that are often distinct from those of other international venues. What types of business approaches can firms use when doing business in...

Summarize the rules required to take the Production Activities Deduction (PAD).

For 2 0 2 4 , the exemption equivalent for the estate tax is $ 1 3 . 6 1 0 million. True or False

Fewer levels of management tend to exist in organizations whereGroup of answer choicesall managers supervise the same number of employees.managers supervise only a small number of employees.managers...

3 How do you react to the idea of asking candidates to do unusual things such as singing and dancing? Bigmouthmedia is a digital marketing company offering services such as pay per click management,...

4 What is the recruitment phase?

2 What is the distinction between a job description and a person specification?