Assume that you are the manager of a perfectly competitive


Assume that you are the manager of a perfectly competitive firm. The market price of the output is $60. Your firm's total cost function is Q^2+12Q+60.

a) How many units should your firm produce in the short run?

b) What will the profit/loss of your firm be in the short run?

c) What will change in the transition to the long run in terms of the number of firms in the industry? Limit your answer to one sentence

d) How will the market price in the long run compare to the short-tun market price? Limit your answer to one sentence.

e) What will happen to your firm's profits in the long run? Limit your answer to one sentence.

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Business Economics: Assume that you are the manager of a perfectly competitive
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