Calculating Output Level and Profit of a firm
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firms total cost are
C(Q) = 40 + 8Q + 2Q^2
a) how much output should the firm produce in the short run?
b) What price should the firm charge in the short run?
c) What are the firm’s short run profits?
d) What adjustmenst should be anticipated in the long run?