Looking for detailed solution for this question.
Consider three Firms out of a competitive industry. They have the following technologies:
C1(y) = y^2 + 4, C2(y) = y^2 + y + 4, and C3(y) = y^2 + 2y + 4 respectively.
a) Suppose that in the short-run the market price is p = 5. Calculate each firm's profit.
b) Show each firm's profit on each firm's graph.
c) Write the shutdown condition and explain why it will be reasonable for a firm to produce zero output.