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Q: A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm's total costs are C(Q) = 40 + 8Q + 2Q2.
1. How much output should be firm produce in the short run?
2. What price should the firm charge in the short run?
3. What are the firm's short run profits?
4. What adjustments should be anticipated in the long run?
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