Competitive environment, A company operating in a purely

Competitive environment

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Reference no: EM1371712

A company operating in a purely competitive environment is faced with a market price of $250. The company total cost function (short run) is

TC = 6,000 + 400Q - 20Q^2 + Q^3

a. Should the firm produce at this price in the short run?
b. If the market price is $300, what will total profits (losses) be if the firm produces 10 units of output? Should the firm produce at this price?
c. If the market price is greater than $300, should the firm produce in the short run?

Reference no: EM1371712

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