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A firm has the following short-run demand and cost schedule for a particular product:

Q = 200 - 5P

TC = 400 + 4Q

a) At what price should this firm sell its product?

b) Determine the total profit/loss this firm would make

c) If this is a monopolistically competitive firm, what do you think would start to happen in the long-run? describe.

d) Assume in the long-run, the demand shifted to: Q = 100 - 5P, What should the firm do? describe

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M937517

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