1. Suppose a firm has the total cost function TC = Q2 + 400 (a) Is this firm in the short run or long run? (1 point) (b)

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1 Suppose A Firm Has The Total Cost Function Tc Q2 400 A Is This Firm In The Short Run Or Long Run 1 Point B 1 (70.81 KiB) Viewed 31 times

1. Suppose a firm has the total cost function TC = Q2 + 400 (a) Is this firm in the short run or long run? (1 point) (b) Suppose this firm is facing a perfectly competitive market where the price is P= 24. What is the firm's marginal revenue? (1 point) (c) Write the firm's profit function and solve for the profit-maximizing quantity of production Q*. (3 points) (d) How much profit does the firm make at the profit-maximizing level of output? (1 point) (e) Write an equation for the firm's short run average variable costs (AVC). (1 point) (f) Write the condition for whether a firm should continue to operate or shut down. Should this firm shut down? If not, when should it shut down? (2 points)