Calculate firm profit-write down its short run supply curve

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Suppose the (short run) total cost of production for a firm is given by the equation: C(q)=8q + q^2 + 400. This implies that the marginal cost equation is MC(q) = 8 + 2q.

1. Assuming the firm is a representative firm in a competitive market, how much does the firm produce in the short run if the market price is $60? Calculate the firm's profit and write down its short run supply curve.

2. Is the above $60 the long run equilibrium price? If not, what is the long run equilibrium market price?

Reference no: EM131240709

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