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A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by:C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P.
a.What is the profit maximizing output for this company?
b.What is the profit (loss) this firm will make at the profit maximizing level of output?
c.How many firms will compete in this market at the profit maximizing price and quantity? (Assume all firms are identical; i.e., have the same cost function and fact the same price.
d.In the long run, what will be the profit-maximizing price and quantity in this market?
e.What is the profit maximizing quantity in the long run and what will the level of economic profit be for each of these N identical firms?
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