Q. A firm sells its product in a perfectly competitive market where or firms charge a price of $80 per unit. Firm's total costs are C(Q) = 40 + 8(q) + 2(Q)^2.
a. Explain how much output should firm produce in short run?
b. Illustrate what price should firm charge in short run?
c. Illustrate what are firm's short-run profits?
d. Illustrate what adjustments should be anticipated in long run?