For such a monopolistically competitive firm, the following total cost (TC) relation is true both in the short term and the long term. TC=100+3Q+0.03Q^2 where Q is the output's volume. A risk-adjusted normal rate of return on the firm's investment is included in the TC function. For this monopolistically competitive firm, the short-term total revenue (TR) relation is given by: TR=11Q-0.01Q2. The firm's long-run demand curve is a parallel shift of its short-run demand curve because the firm maintains a high level of product differentiation. The firm should create ___ units of output to maximise total profit in the short term; ___ units of output to maximise total profit in the long term. 1 50;100 2 100;50 3 100;58 4 50;58
For such a
1 50;100
2 100;50
3 100;58
4 50;58
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