Firm X, operating in a perfectly competitive market, can sell as much or as little as...

Firm X, operating in a perfectly competitive market, can sell as much or as little as it wants at the market price. The firm’s cost function is C(Q) = 600 + 8Q + 6Q 2 .

a. At a market price of $140 per unit, what is the firm’s profit maximizing quantity? What is their profit?

b. At a market price of $80 per unit, will the firm stay in business in the short-run? If so, what quantity would they produce and what would be their profit?

Expert Solution

Rahul Sunny answered 2 years ago

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