Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 13

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 + 10 Q + 2 Q 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 adjustments should be anticipated in the long run?