Suppose that each firm in a perfectly competitive market has a cost of TC = 75 + 500 Q - 5 Q 2 + 0.5 Q 3 a) Determine if this is a short-run or...

1.     Suppose that each firm in a perfectly competitive market has a cost of TC = 75 + 500Q - 5Q2 + 0.5Q3

a)     Determine if this is a short-run or long-run cost function (motivate):

b)     Calculate the output that minimizes the firm's AVC.                                                                                                    2 points

What is the firm's shutdown price?