Need typed solution A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its totalcosts as C(Q) = 60 +14Q+2Q².a. How much output should the firm produce in the short run?b. What price should the firm charge in the short run?$GAunitsc. What are the firm's short-run profits?$EAd. What adjustments should be anticipated in the long run?O Exit will occur since these economic profits are too low.O Entry will occur until economic profits shrink to zero.O No firms will enter or exit at these profits.

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A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total costs as C(Q) = 60+14Q+2Q².

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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Question

Need typed solution

A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm estimates its total
costs as C(Q) = 60 +14Q+2Q².
a. How much output should the firm produce in the short run?
b. What price should the firm charge in the short run?
$
GA
units
c. What are the firm's short-run profits?
$
EA
d. What adjustments should be anticipated in the long run?
O Exit will occur since these economic profits are too low.
O Entry will occur until economic profits shrink to zero.
O No firms will enter or exit at these profits.

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