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Determine the level of production and market clearing price

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Question - You are the manager of a midsized company that assembles personal computers. Your company's computers are distinctive, but you also realize that there many other firms that produce similar computers. You have estimated that the demand function for your company's main computer product is Q(d) = 1,000 - 2P while your cost function is C(Q) = 500 + 20Q + 5Q^2.

a. Determine the level of production and market clearing price.

b. Determine the profit or loss of your firm and what happens to your company's profits (or losses) in the long-run.

Reference no: EM132867726

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