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Short term profit-maximizing price and quantity

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Reference no: EM132457004

Suppose that a group of monopolistically competitive firms all face an identical firm demand of P = 368 - 4Q and cost function of C = Q^3 - 10Q^2 +80Q.

a) What is the short term profit-maximizing price and quantity for each firm?

b) How much profit/loss is being incurred by each firm?

c) In the long run, what will happen to the number of firms in the market? What attribute of monopolistic competition allows this to happen?

d) How will this affect the demand curve and profits for the firms?

Reference no: EM132457004

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