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Suppose you are a manager of a watch making firm operating in a competitive market. Your cose of production is given by C = 100 + Q2, where Q is the level of output and C is the total cost. The marginal cost is 2Q. The marginal cost of production is 2Q.
i)if the price of watch is $60, how many watches should you produce to maximize profit?
ii)what will your profit level be? Will there be entry or exit?
iii)at what minimum price will you produce a positive output?
iiii)find the short run supply curve of the firm
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