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10,000 8,000 Marginal cost E Isoprofit curve: P* $63,360 Price, marginal cost ($) Isoprofit curve: $30,000 Isoprofit curve: $0 Demand curve Q* 50 100 120
10,000 8,000 Marginal cost E Isoprofit curve: P* $63,360 Price, marginal cost ($) Isoprofit curve: $30,000 Isoprofit curve: $0 Demand curve Q* 50 100 120 Quantity of cars, Q This above is last year's data. Assume that, beginning this year, Beautiful Cars will have to replace, on average, one car on warranty every year. Which of the following statement(s) is (are) right. Select one: O A. MR equals MC does not hold any longer because MR has changed O B. Both C and D are correct O C. MR equals MC does not hold any longer because MC has changed O D. MR = MC is still valid. O E. The new E lies to the left of the E shown in the graph
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