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Suppose that a firm operating in perfectly competitive industry has short-run cost function given by C(q) = 5 + 2q + q 2 . The market price is $10. (a) What is the profit-maximizing output level for this firm? (b) What is the firm’s total revenue and profits at the profit-maximizing output? (c) What is the minimum price at which the firm will produce a positive level of output in the short run?
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Suppose that a firm operating in perfectly competitive industry has short-run cost function given by...
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