Problem: A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by:
C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P.
Part 1: What is the profit maximizing output for this company?
Part 2: What is the profit (loss) this firm will make at the profit maximizing level of output?
Part 3: How many firms will compete in this market at the profit maximizing price and quantity? (Assume all firms are identical; i.e., have the same cost function and fact the same price.
Part 4: In the long run, what will be the profit-maximizing price and quantity in this market?
Part 5: What is the profit maximizing quantity in the long run and what will the level of economic profit be for each of these N identical firms?