How much output will competitor prodcue

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Assume we have a profitmaximizing firm for which P=17-Q, and TC=5Q=Q^2/2, where P is theprice of output Q, and TC is the total cost of production.
1. Suppose the firm behaved likea perfect competitor in the short-run. How much output will it prodcue? How much profit will it earn? What price will it charge?
2. Suppose the firm behaved likea perfect competitor in the long-run. How much output will it prodcue? How much profit will it earn? What price will it charge?
3. Explain the theorecticalrationale for the difference in your answers for 1 and2.
4. Suppose the firm behaved likea pure monopolist in the short-run. How much output will it produce? How much profit will it earn? What price will it charge?
5. Given the solution to #4relative to the solutions in 1 and 2, what do you conclude aboutthe effects of monopoly relative to perfect competition? Is society likely to be helped or harmed by firms with monopoly power?Explain.

Reference no: EM13244365

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