If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what

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If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what does it pay a perfectly competitive firm to do if
a. The market price is $51?
b. The price is $36?
c. The price is $12?

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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Apr 12, 2016 07:14 AM

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If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what

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a If the market price is 51 the firm should reduce output to produce at the point where MC ...View the full answer

Economics Principles and Policy

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