A firm in a competitive industry has a total cost function of:
TC = 0.3Q2 – 6Q + 60
Its corresponding marginal cost curve is:
MC = 0.6Q – 6
At what price is the firm in the long run equilibrium
Present a graphical representation of this case study and discuss about the profit maximising output under the different scenarios presented above. Would you introduce any policy intervention in this case? Under which circumstances?
