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The firm for which you are a manager operates in a perfectly competitive market. The market price for this perfectly competitive firm is P = $14. You are also given your estimated total cost curve, C(Q) = 10 + 4Q + 0.5Q2.
Is the cost curve a short or long run cost curve? Please explain.
What is the profit maximizing solution for this firm?
Can this firm maximize revenues? Please explain.
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