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1.A firm operating in a perfectly competitivemarket faces the following Total cost function, . From this: TC= 2/3Q3-9Q2+80Q+12 a)If the market price of a commodity

1.A firm operating in a perfectly competitivemarket faces the following Total cost function,

. From this: TC= 2/3Q3-9Q2+80Q+12

a)If the market price of a commodity which is produced by the firm is $ 40, how much should the firm produce & sale to be at equilibrium.

b)Calculate the output level at which AVC reaches its minimum point.

c)What you advise the firm at the existing market price? Why?

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