Suppose ABC Corp is a perfectly competitive firm that makes baseballs gloves. The price of a glove is $40. The total cost of making baseball gloves is given by TC = 20 + 15Q + 3Q²

a) To maximize profit, this firm will produce Quantity, Q = ______. The firm’s profit = ______.

b) In the short run, the firm will continue operating with a loss if the price is between _____ and _____. (Hint: Think breakeven and shut down price)

c) Using the data in the question and your answers above, graph the short run supply curve of this firm

 

 

Answer rating: 100% (QA)

A A profit maximizing perfectly competitive firm produces at the point where market price MC Given t... View the full answer