You are a manager in a perfectly competitive market. The price in your market is $30. Your

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You are a manager in a perfectly competitive market. The price in your market is $30. Your total cost curve is C(Q) = 10 + 2Q + .5Q2.

a. What level of output should you produce in the short run?

b. What price should you charge in the short run?

c. Will you make any profits in the short run?

d. What will happen in the long run?

e. How would your answer change if your costs were C(Q) = 10 + 5Q + 30Q2?

Related Book For answer-question

Precalculus

ISBN: 978-0321716835

9th edition

Authors: Michael Sullivan

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Posted Date: Mar 06, 2024 02:40 AM

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You are a manager in a perfectly competitive market. The price in your market is $30. Your

Question:

Expert Answer:

a To determine the level of output you should produce in the short run you need to identify the quantity where marginal cost MC equals the market price In perfect competition firms maximize their prof... View the full answer

Precalculus

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