How much output should the firm produce in the short run

Assignment Help Business Economics

Reference no: EM13987002

A firm sells its product in a perfectly competitive market where other firms charge a price of $120 per unit. The firm’s total costs are C(Q) = 60 + 8Q + 2Q2.

a. How much output should the firm produce in the short run?

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

c. What are the firm’s short-run profits?

d. What adjustments should be anticipated in the long run?

-Entry will occur until economic profits shrink to zero.

-Exit will occur since these economic profits are too low.

-No firms will enter or exit at these profits

Reference no: EM13987002

Questions Cloud

Finding and retaining software programmers : You basically spend your time in an isolated office writing code and sitting in meetings during which you participate in looking for and evaluating hundreds of current employees and potential employees. Microsoft has no problem in finding and reta..

No haggle sales policy : You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your “No Haggle” sales policy. Last year, your dealership earned record profits of $1.5 million. In your market, you compete against two other deal..

Considering selling several units of homogeneous product : A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 120 - 0.5P, and the marginal cost of production is $150. Determine the optimal number of units to put in..

Assuming cost conditions in the industry remain constant : Suppose that initially the price is $20 in a perfectly competitive market. Firms are making zero economic profits. Then the market demand shrinks permanently, some firms leave the industry, and the industry returns to a long-run equilibrium. What wil..

How much output should the firm produce in the short run : A firm sells its product in a perfectly competitive market where other firms charge a price of $120 per unit. The firm’s total costs are C(Q) = 60 + 8Q + 2Q2. How much output should the firm produce in the short run? What price should the firm charge..

What should promotion and pay raises be based on seniority : ASSIGNMENT: What should promotion and pay raises be based on, seniority, performance, education

What mass of lithium is present : Lithium carbonate, Li2CO3, contains 18.8 % lithium and is used in the treatment of mental illnesses such as bipolar disorder. What mass of lithium is present in a 1.87-g dose of lithium carbonate?

Question regarding the decision theory : Looking back over the previous eight modules, which of the leadership and decision-making concepts have had the greatest impact on you as a decision leader?

Wasn''t there a famous library there is it still there : Alexander the Great was one of the greatest generals because of his ability as a technician and troop leader. He was viewed as a brave and generous man by many, but he also had his evil side when he had to be, especially when it came to politics.

User Account

All Pages