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Q. Suppose in the short run a perfectly competitive firm has variable cost = 3q2, and MC = 6q where q is the quantity of output produced. Also, the firm has fixed cost F = 2500.
a) If the market price of the product is 270, how much output should the firm produce in order to maximize profit?
b) How much profit will this firm make?
c) What will happen to the market price as we move from the short run to the long run?
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