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A firm sells its product in a competitive market where all firms charge a price of IDR 40,000 per unit. The firm's total costs are given as below:
C(Q) = 2,805 + 122 Q + Q2
a. How much output should the firm produce in order to maximize profit?
b. What is the difference between production (and cost) in the short-run and the long-run?
c. In what sense competitive market is an ideal market structure?
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