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    Profits in long run

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    You are the manager of a monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2.
    a. What level of output should you choose to maximize profits?
    b. What price should you charge?
    c. What will happen in your market in the long run?
    d. Calculate the profit and explain.

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    https://brainmass.com/economics/general-equilibrium/profits-in-long-run-313853

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    You are the manager of a monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2.
    a. What level of output should you choose to maximize profits?
    b. What price should you charge?
    c. What will happen in your market in the long run?
    d. Calculate the profit and explain.

    a. Profit ...

    Solution Summary

    Profit maximizing output level is highlighted.

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