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The variable cost function of a competitive firm is given by VC = Q3- 40Q2+ 1600Q Assume the firm's fixed cost is $1,500.
(a) If the market price for a unit of Q is $1,400, determine the firm's profit maximizing level of out and its profit.
(b) What is the market long run price?
(c) What is the firm's shutdown price?
Make sure your explanation is clear and that you provide specific examples. Any quotes from the readings or external materials must include quotation marks and an in-text citation.
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