a) What are the firm’s profits (losses)? b) If the firm shut down, what would its profits (losses) be? c) In the long run, if conditions in this industry stay the same, will there be entry or exit of firms to/from the industry? Question # 2 The cost function for a firm is given by C(Q)=5+Q^2 The firm sells output in a perfectly competitive market, and the other firms in the industry sell output at a price of 40$ a) What price should the manager of this firm put on its product? b) Would you expect the profits to remain in the long run?