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A firm sells its product in a perfectly competitive market where other firms charge a price of $110 per unit. The firm estimates its total costs as ??(??) = 70 + 14?? + 2??2.
a. How much output should the firm produce in the short run?
b. What will be firm's total cost to produce that output?
c. What price should the firm charge in the short run?
d. What are the firm's short-run profits?
e. What are the fixed and variable costs?
f. What is firm's marginal cost, average fixed cost, average variable cost and average total cost?
g. What adjustment should be anticipated in the long run?
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