Youre the manager of a firm that has constant marginal cost of $6. Fixed cost is zero.

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You’re the manager of a firm that has constant marginal cost of $6. Fixed cost is zero. The market structure is monopolistically competitive. You’re faced with the following demand curve: image text in transcribed

a. Determine graphically the profit-maximizing price and output for your firm in the short run. Demonstrate what profit or loss you’ll be making.

b. What happens in the long run?

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 14, 2024 04:00 AM

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Youre the manager of a firm that has constant marginal cost of $6. Fixed cost is zero.

Question:

Price $12 10 8 6 4 2 Demand 100 200 300 400 500 600 Quantity

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Microeconomics

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