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3. Figure 12.1 Price and ATC cost MC AVC P2 b e P1 MR a 20 Q Q2 23 Quantity Using the diagram presented above,
3. Figure 12.1 Price and ATC cost MC AVC P2 b e P1 MR a 20 Q Q2 23 Quantity Using the diagram presented above, answer the following questions. (i) Identify the profit-maximizing output (Q*) and the profit-maximizing price (P*). (ii) Identify the TR. (iii) Identify the TC. (iv) Identify the economic profit (Te). ( V ) What should this firm do in the short run? Stay open or shut down? Why? 5 points
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