Question
1. A firms MC//MR at 30 units of output and a price of $12. ATC at 30 units of output is $15.00, AVC are $13,
1. A firm’s MC//MR at 30 units of output and a price of $12. ATC at 30 units of output is $15.00, AVC are $13, and consumers are demanding 30 units at a price of $20. What is the economic outcome? What type of profit/loss does this represent to the firm? What is the total profit/loss? Show your calculations.
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
8th edition
9780077802615, 73523224, 77802616, 978-0073523224
