The Green Company produces chemicals in a perfectly competitive market.
The current market price is $40;
the firm's total cost is TC = 100 + 4Q + Q2,
MC = 4 + 2Q.
(a) Determine the firm's short run profit maximizing output and short run profit (or loss). Please show your calculations.
(b) What is the equation of this firm's short run supply curve?
(c) If the total cost of this firm is now 144+4Q + Q2 and MC is still 4 + 2Q and everything else remains the same, will the firm's short run profit maximizing output change? Please explain.
(d) What is this firm's long run equilibrium price and long run output and long run profit? Please show your calculations.
(e) What happens to the number of firms in the long run in this industry? Please explain.