Short-run demand and cost schedule for particular product

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

c) Suppose in the long run, the demand shifted to Q = 100 -5P. What should the firm do? Explain.

Reference no: EM131170843

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