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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's total costs are C(Q) = 50 + 10Q + 2Q². Instructions: Round up your answers to no decimals. a. How much output should the firm produce in the short run? Q = b. What price should the firm charge in the short run? P = $ c. What are the firm's short-run profits? Profits = $

A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q². Instructions: Round up your answers to no decimals. a. How much output should the firm produce in the short run? Q = b. What price should the firm charge in the short run? P = $ c. What are the firm's short-run profits? Profits = $

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: Perfect Competition
Section: Chapter Questions
Problem 4QP
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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's total costs are C(Q) = 50 + 10Q + 202. Instructions: Round up your answers to no decimals. a. How much output should the firm produce in the short run? Q = b. What price should the firm charge in the short run? P = $ %3D c. What are the firm's short-run profits? Profits = $ %3D d. What adjustments should be anticipated in the long run? (А, В, С, ог D) A. Exit will occur since accounting profits are always zero in the long run. B. No firms will enter or exit at these level of profits. C. More firms will enter the industry, incresing the supply, until economic profits shrink to zero. D. More firms will enter the industry since economic profits are positive.
Transcribed Image Text:A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 202. Instructions: Round up your answers to no decimals. a. How much output should the firm produce in the short run? Q = b. What price should the firm charge in the short run? P = $ %3D c. What are the firm's short-run profits? Profits = $ %3D d. What adjustments should be anticipated in the long run? (А, В, С, ог D) A. Exit will occur since accounting profits are always zero in the long run. B. No firms will enter or exit at these level of profits. C. More firms will enter the industry, incresing the supply, until economic profits shrink to zero. D. More firms will enter the industry since economic profits are positive.
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