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roseworm750Lv1
18 Jul 2020
Suppose that a competitive firm's marginal cost of producing output q is given by MC (q) = 3 + 2q. Assume that the market price of the firm’s product is $9. a. What level of output will the firm produce? b. What is the firm’s producer surplus? c. Suppose that the average variable cost of the firm is given by AVC (q) = 3 + q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or zero profit in the short run?
Suppose that a competitive firm's marginal cost of producing output q is given by MC (q) = 3 + 2q. Assume that the market price of the firm’s product is $9. a. What level of output will the firm produce? b. What is the firm’s producer surplus? c. Suppose that the average variable cost of the firm is given by AVC (q) = 3 + q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or zero profit in the short run?
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2 Jun 2021
